Corporate Series – Part 2 – What are the roles within a company?

Let’s imagine a company as a big boat, and who has what roles:

Shareholders: The shareholders would be the people who put money into buying the boat. They own different parts of the boat depending on how much money they put in. They want the boat to go to places where it can make more money, like treasure islands. But, they usually don’t drive the boat, they just check on it from time to time.

Directors: Now, the boat needs someone to decide where it should go, that’s the job of the directors. They are like the ship’s captains. They use maps, weather reports, and other information to make big decisions like which islands (or markets) the boat should go to. The people who put money into the boat, the shareholders, choose who the directors are.

Officers: These are the people who run the boat day-to-day. They’re like the crew members: the helmsman, the lookouts, and so on. The captain (the board of directors) gives them orders, like “Set sail for that island!” or “Repair that hole!”, and they make sure those things get done. They report back to the captain with updates like, “The hole is fixed!” or “We’re halfway to the island!”

In summary, the shareholders own the boat, the directors decide where the boat should go, and the officers make sure the boat gets there safely and successfully.


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