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