Which Stakeholders Can Currently Be Considered to Be Part of the “the Company” for the Purpose of the Director's Duty to Act in the Best Interests of the Corporation?

As companies are artificial entities, those who are elected to manage them are acting in their directing mind and will. It appears that an outsider contracts with a company while it is the director who negotiate the contract and who make representations on behalf of the company. So it is essential that those who manage companies (directors) be engaged in appropriate duties.

Limited Company – Organisations set up to run your business. They must adhere to legislation such as The Companies Act 2006. This act sets out duties the appointed director holds. For example, to ‘act within your power as a company director’. These businesses need to be registered with Companies House and must submit any important

The definition of company is 'A legal entity, by legislation, which permits groups of people, as shareholders, to apply to government for an independent organization to be created, which can then pursue set objectives ' (Duhaime, 2014).

a. Managers have often viewed shareholders as one of the “Stakeholders” of the firm, others being employees, customers, suppliers, banks, and so forth.

According to the Organization for Economic Cooperation and Development (OECD), corporate stakeholders have a very important role, not only within the business for the community as well. "Good corporate governance helps...to ensure that corporations take into account the interests of a wide range of constituencies, as well as the communities within which they operate, and that their boards are accountable to the company and the shareholders. This, in turn, helps to assure that corporations operate for the benefit of society as a whole" (1999).

Stakeholders encase all individuals and groups who in one way or another are impacted by the presence, successes, or failure of a business. Employees, suppliers, managers, the community, customers, competition, the government, and stockholders are all considered, in the broadest sense, to be stakeholders. Stockholders, unlike the rest, in addition to being stakeholders, are their own little group. Stockholders are the owners or public and private limited companies. Companies have the right to restrict ownership, and spread it over as few or as many individuals as they wish. Stockholders own pieces of the company and with that have a vested interest in the financial growth of the company. Money speaks, and in all cases, with the exception of eleemosynary companies, the owners are most concerned with making profit.

25. A number of European countries require public companies to include employee members on their boards of directors, so: A. The employees are available to answer questions. B. Management does not have to attend the meetings. C. That their interests will be explicitly represented. D. They have more power than any other stakeholder. 26. Stakeholder groups can include: A. Stockholders. B. The media. C. Environmental activists. D. All of the above. 27. Which one of the following is considered to be a nonmarket stakeholder of business? A. Customers. B. Media. C. Creditors. D. Stockholders. 28. Which of the following is not considered to be a nonmarket stakeholder? A. Government agencies. B. The natural environment. C. Activist groups. D. Non-governmental organizations. 29. The phenomenon of a person or group holding multiple stakeholder duties is referred to as: A. Role sets. B. Primary Stakeholder(s). C. Ownership Theory. D. None of the above. 30. A stakeholder analysis: A. Creates equality among all stakeholder interests. B. Allows managers to examine two primary questions. C. Involves understanding the nature of stakeholder interests. D. All of the above. 31. The four types of stakeholders' power recognized by most experts are: A. Voting,

The stakeholders or those who have an invested interest in this business – those who make the decision or one who impact this organization internally and externally - are:

The Board of Directors is defined as “a group of elected individuals who serve as representatives of an organizations’ stockholders” (Root). They are the decision-making power over management related policies and fiduciary duties of the organization. They make decisions to fire or hire the executive leaders, conduct performance evaluations on the company’s leading executives, and ultimately decide the executive’s compensation, as well as dividends to be distributed to the shareholders. The Board of Directors determine the organization’s strategic direction, and make sure the company is operating under the principles of the law to ensure the organization is conducting itself ethically, legally, and with social and environmental responsibility (Bateman 267).

In accordance with business dictionary writes, "governing body (called the board) of an incorporated firm. Its members (directors) are elected normally by the subscribers (stockholders) of the firm (generally at an annual general meeting or AGM) to govern the firm and look after the subscribers ' interests". The responsibilities of the board of director firstly, defining the purposes and procedures, which are the part of the company 's strategy and compliance because the purpose encourages the company to reach the goals step-by-step. Secondly, the director should monitor the progress during an achievement of those purposes and procedures. Thirdly, senior management is also appointed, hired, monitored, evaluated and fired by the directors (the member of the board include senior called inside directors or executive directors. Fourthly, determining and paying the dividend. Lastly, responsible with the activities of the company that relevant many parties.

In light of recent global business scandals, corporate governance has become a significant topic. It can be understood as a dichotomy between the shareholders and the management of a company. Navigating this relationship is often problematic as the shareholders provide oversight while management makes daily executive decisions on their behalf. When managed appropriately, this balance between shareholders and management can result in improved efficiency, conflict resolution and a contribution to improving the standards and efficiency of the entire operation. This paper will examine the nature of both roles, how they often are in conflict and discuss the corporate ethics of this relationship. For a student of business organization, understanding how varying elements of a company resolve their issues is critical and can serve as a lesson that can be applied in other endeavors.

According to the principle of the corporate veil, in order to make the shareholders liable for their company’s debt, it considers towards the company structure with the separate legal personality doctrine. Generally, being a shareholder means that they can obtain unlimited company’s profit whereas they are not responsible for more than the amount they invested. Thus, Limited Liability Company is the most favoured business form for investors. As a result, the creditors of the company cannot claim compensation from the shareholders even if the company has insufficient funds to pay its own debts in full.

The legal principle on company law established by the case “Salomon v Salomon & Co Ltd” is that a company upon incorporation is a body corporate which is recognized by law to have a separate legal entity from its members and officers. The company and members are two separate bodies. This is known as the veil of incorporation. Thus, the debts of the company cannot be recovered from its members. For example, the debts of the company cannot be recovered from its member. Rather than the director or its member, a company is normally liable for any breach by itself. A company is an artificial legal person that exists independently of the individuals who at any given time are the members of the corporate body. In the case of Salomon V Salomon & Co Ltd, even though Salomon managed the business solely by himself, yet in law Salomon and the company is separate body as the company has incorporated.

It is a most important duty of fiduciary duty. The decision makers within the company should act in the interests of the company. The easiest way to observe with this duty is not to engage in transactions that involve a dispute of interest. We often call these "self-dealing" transactions. The concept is that the directors are dealing with the selves, and may not reach an agreement that is fair to the company. An alternative, that is accepted in most countries because a flat ban on self-dealing transactions can be impractical, especially for smaller firms, is to have self-dealing transactions approved by a uninterested decision maker. That decision maker can be uninterested directors, uninterested shareholders or sometimes both.

A company’s stakeholders are all those who are influenced by and can influence a company’s decisions and action, both locally and globally. Business stakeholders include(but are not limited to) employees, suppliers, customer, community organizations, subsidiaries and affiliates, joint venture partners, local neighborhoods, investors, shareholders(or a sole owner in case it is sole