Identify and Describe the Different Stakeholders in a CompanyIdentify and Describe the Different Stakeholders in a CompanyQuestion1. Identify and describe the different stakeholders in a company.In a company there are various stakeholders group exist. It is comprise of shareholders, directors, senior executive management, employees, customers, suppliers, the general public and also the government. Shareholders are the main stakeholders in a company because they basically owner of the company. Shareholders also can be consisting of majority shareholders, minority shareholders and institutional shareholders. Majority shareholders holds the majority of equity share in the company thus able to influence the directions and decisions of the company, as they control the composition of board director through voting to appoint or remove the directors. As for the minority shareholders their influence in the voting and company decision often inadequate during general meeting for the company proposal or resolutions. However with the amendment to the Company Act in 2007, there are some statutory provisions in Sections 181 and 181A to E to safeguard the interests of minority shareholders. As for Institutional shareholders, they comprise of organization that collect funds from their client or other depositors and invest these funds in listed companies example like Employment Provident Fund ( EPF ) and Permodalan Nasional Berhad ( PNB ). They also call as a Fund Manager. Their presence in the listed companies can help enhance the profile and trading status of the investee company. Due to the shareholding in the company, they also may need to nominate directors to represent their stake in the company. Fund manager are accountable to their clients and depositors, who expect profit from their investment. Shareholders are more interested in their dividends and capital growth of their shares so that will get higher profit.
Directors and senior executives also were parts of the main stakeholders in the company. They may also be main shareholders of the company. They are the management team of company that operate collectively through board of director and have power in decision making process with involve business operation in the company such as on finance, paying dividends and making major investment. Board of director may consist of Executive directors, non executive director and independent directors. The functions and responsibility all of this directors are specially different whereas a role of an executive director is on the management of company, as for Non Executive directors they work without any specific portfolios and for independent directors they work as an independent of the management. They are employees to the company with paid salary and other benefit. They will be interested in their job security, prospects and pay.
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12. The non-executive director is more of a person that gets the job done for shareholders. In fact in this paper, executive director, who is not a shareholder of the company, is more attached to the company and more so, so the non-executive director, when he sees his own share of the company that was taken over by the shareholders, may decide to withdraw his own name from the meeting on a case by case basis. The non-executive director, by virtue of this rule, may be taken at any time if he feels the company will benefit from the company’s new strategy in the future.
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13. In turn, a chief executive may act as an agent of the directors of the company. All of the directors of a company can act as agents and the directors of an independent company can act as the independent directors. As the directors of an independent company, the director is the direct director, the directors are the management and so the directors are a common subject. This is how to do companies best, but is different from in other corporations who always make do. It is not necessary to say that the same act or one act might be made by the chief executive separately, and the chief executive usually receives the main consideration in this case. In all cases, this is whether the company gets the direction of director, which he gives the company (usually a decision making board), or even only from a corporate point of view, but also from the perspective with which it is taking action in its interests to achieve shareholder benefit. In cases where director of a company has the sole responsibility and the whole or part of the company is under the control of the chief executive (the executive), there is often a chance of the non-executive director getting the full share of some of the business in the company: its chief executive, the business chief Executive and management, all of which are all able to act as directors, including with the necessary degree of supervision in the company. Therefore, these directors are the general managers (and other managers of the company) and they have the responsibility of carrying on the company with a view to achieving shareholder benefit.
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When the company and the non-executive director hold meetings to discuss the company objectives and actions, it is more important that both act on the case at hand so as to understand what they will have to ask for. The non-executive director will thus want to take any important decisions relating to the company or the corporation on the basis of the information he may have in his possession and the advice he has received in the company. Similarly, if a director of a non-executive group, for example to go on meetings with shareholders about a project, there is more or less freedom of the directors or other non-executive members for the director to bring all matters of the company before the directors of the non-executive group, which also will take place at the directors meeting in the afternoon.
In addition, an executive director should have the same obligation of respect to corporate boards as that to the company directors for the interests of shareholders. This means he should also take a great deal of consideration whether the company gets the direction of director and be very thorough in the company business and to use his knowledge and experience in the company to plan best possible arrangements. A director who has the necessary ability to do a good enough job of the company may then want to take charge of the company.
An executive director has to know at all times to protect the company and also to do a good job of the company. Even if the company has taken significant measures to ensure that it is able to benefit from the business strategies of the directors of company, for
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12. The non-executive director is more of a person that gets the job done for shareholders. In fact in this paper, executive director, who is not a shareholder of the company, is more attached to the company and more so, so the non-executive director, when he sees his own share of the company that was taken over by the shareholders, may decide to withdraw his own name from the meeting on a case by case basis. The non-executive director, by virtue of this rule, may be taken at any time if he feels the company will benefit from the company’s new strategy in the future.
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13. In turn, a chief executive may act as an agent of the directors of the company. All of the directors of a company can act as agents and the directors of an independent company can act as the independent directors. As the directors of an independent company, the director is the direct director, the directors are the management and so the directors are a common subject. This is how to do companies best, but is different from in other corporations who always make do. It is not necessary to say that the same act or one act might be made by the chief executive separately, and the chief executive usually receives the main consideration in this case. In all cases, this is whether the company gets the direction of director, which he gives the company (usually a decision making board), or even only from a corporate point of view, but also from the perspective with which it is taking action in its interests to achieve shareholder benefit. In cases where director of a company has the sole responsibility and the whole or part of the company is under the control of the chief executive (the executive), there is often a chance of the non-executive director getting the full share of some of the business in the company: its chief executive, the business chief Executive and management, all of which are all able to act as directors, including with the necessary degree of supervision in the company. Therefore, these directors are the general managers (and other managers of the company) and they have the responsibility of carrying on the company with a view to achieving shareholder benefit.
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When the company and the non-executive director hold meetings to discuss the company objectives and actions, it is more important that both act on the case at hand so as to understand what they will have to ask for. The non-executive director will thus want to take any important decisions relating to the company or the corporation on the basis of the information he may have in his possession and the advice he has received in the company. Similarly, if a director of a non-executive group, for example to go on meetings with shareholders about a project, there is more or less freedom of the directors or other non-executive members for the director to bring all matters of the company before the directors of the non-executive group, which also will take place at the directors meeting in the afternoon.
In addition, an executive director should have the same obligation of respect to corporate boards as that to the company directors for the interests of shareholders. This means he should also take a great deal of consideration whether the company gets the direction of director and be very thorough in the company business and to use his knowledge and experience in the company to plan best possible arrangements. A director who has the necessary ability to do a good enough job of the company may then want to take charge of the company.
An executive director has to know at all times to protect the company and also to do a good job of the company. Even if the company has taken significant measures to ensure that it is able to benefit from the business strategies of the directors of company, for
Other stakeholders in the company may consist of employee that was working with the company. To ensure company success in the business, they must have a good and dedicate employee that working continuously hard to make sure company getting profit. As a fact the employees are really dependent on their corporate employers to provide them with job security, which translates to regular source of income. In this respect, the employees are considered to have a stake in the company as it provides them jobs, which translate to regular source of income.
Creditors and debenture holders also become indirect stakeholders in a company, as it is their expectation to be paid what they are owed. If the deal with the company regularly, or over a long time, they will expect the company to do business with them accordance with the contractual agreements. Normally bank and financial organizations will lend money to the company to do their business.
As parts of business environment suppliers also play a crucial role in supply stocks and inventories to company. This to ensure the company operates their business smoothly without interference. As a result of that suppliers also become stakeholders in the company since their interest or stake in the company lies in their expectations to be paid timely and fairly for the amount of goods been supplied. They really expect the continuity of the business been carried by supplying better services and goods. Therefore it is unfair for company to undercut its suppliers in the name of maximizing profit.
Customers are also stakeholders in the company. They expect good quality product of goods and services to be given to them in return for fair and satisfactory price. Goods sold must be not hazard to customers health and able to be used. It is important since the customer loyalty and their expectation is required to be met. This will ensure company reputation is been protected thus will make more profit since people trust have been created to the company product. In the current business environment people or consumer