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What group has the ultimate responsibility for protecting and managing interests of stockholders?

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Wiki User
2006-08-26 22:11:37

There are essentially two groups responsibile for protecting and

managing the interests of stockholders: the Board of Directors and

the Management Team. Ultimately the responsibility falls with the

management team, as they tend to be hands-on in the daily

operations of a business. They should know what's going on and be

held accountable for not reporting shortcomings, expectations,

news, etc. in a timely manner to the Board and also to corporate

shareholders. The Board Of Directors is responsible to look after

the interests of the stockholders. Among other responsibilities

this implies supervision of internal controls to oversee that the

laws are adhered to, that profits are generated and that proper

external audits are carried out.

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