Information about how to choose shareholders and directors.
Who should be appointed as shareholders and directors?
The people who control the community company are the directors and shareholders. The decision about who will take these roles is made when applying for incorporation of the community company. They can of course be changed as well, as long as the changes follow the company’s rules.
The directors of a community company have the same duties as directors of any other company. They need to be able to understand what is happening in the general life of the company, how the company is performing financially, and how the company is benefitting the community.
They have to act honestly, and they have to act in the best interests of the company- not in their own best interests.
Directors of a community company have the same responsibilities as those of a private company. More information on these responsibilities, called directors duties, is contained in this section on the guide to being a Company Director.
The shareholders are the owners of the company. However, for a community company this means that they own their shares on behalf of and in trust for the community. They have to act and make decisions in a way which reflects the community’s interest.