What are the differences between Directors, Shareholders & Employees?

Directors

• Directors have the responsibility of running and managing a Limited company;
• Directors are responsible for ensuring all company accounts are filed with HMRC and Companies House;
• Directors must have board meetings to decide on company activities – including taking a dividend.

Shareholders

• Shareholders are not involved in the running and managing of the Limited company;
• Shareholders are involved in some decisions, like the change of company name, however not day to day running;
• Shareholders are entitled to take dividends from the company, as long as these can be justified from their role in the company.

Employees

• Employees work for the Limited company and are employed. They will receive a monthly salary from the Limited company.
• They are not part of any decision making process and do not have any rights to dividends.