Ownership: They are the owners of the corporation. Common shareholders are entitled to vote at shareholders’ meetings on company-related issues such as electing the board of directors and choosing an auditor. Most shareholders are not involved in managing the affairs of the corporation. Liability: Shareholders’ liability for debts of the corporation is limited to the price they paid for the shares they own. Profits: Shareholders receive a portion of profits based on the type and number of shares they own in the corporation. Entitlement: They are entitled to share the assets if the corporation dissolves, after all debt obligations have been satisfied.

The board of directors is elected by the shareholders to guide the affairs of the corporation. Directors owe a fiduciary duty to the corporation, and must disclose any personal interest in any business in which the corporation participates.

Officers are hired by the board of directors. They are responsible for the day-to-day management of the corporation Unlike shareholders, officers can legally bind the corporation to contracts they sign on its behalf.