Duties of Corporate People

Running head: CORPORATE PEOPLE
Duties of Corporate People
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Abstract
Corporations are composed of many people at varying positions. The corporate people have different roles in the organizations. Their role is to ensure that the goals of the company are met and the company obtains profits. The three major categories of the corporate people are the directors, the shareholders and the officers. The corporate people play different roles in the corporation. This paper seeks to address the duties of the shareholders, the directors and the officers in achieving the goals of a corporation.
Duties of Corporate People
A corporate consists of many people that are charged with different responsibilities to ensure that the corporation achieves its goals. The people of corporations include the directors, the shareholders and officers. Some of the duties of the corporate people in the public and private sectors differ (Schneeman, 2002).
When a corporation is formed the directors are selected by the incorporator of the corporation. After the incorporation the directors are elected on an annual basis. The minimum number of directors that a public corporation can have is three while a private company can have a minimum of two directors. The duties of directors in the public and private corporations include duty of good faith, duty of care, duty of loyalty, and development of long-term strategies. Duty of good faith requires the directors to be honest and fair while undertaking operations of the company. They are required to disclose all information to the shareholders and treat the shareholders with equality (Adamson & Morrison, 2009).
Duty of care requires the directors to act diligently and reasonably when making decisions of the corporation and when engaging in various activities that may affect the corporation. On the other hand, duty of loyalty requires the directors to engage in activities that ensure utmost benefits for the corporation. To develop long-term strategies, the directors have the duty of designing the strategies that are required in achieving the goals of the organization. It is the duty of the corporation’s directors to appoint the top management of the corporation. The directors are also required to approve the...