B3 MISHU ContentBlog Batch 3 03

Decisions, Decisions, Decisions, Who Makes Them? Shareholder or Director? 

Shareholder and Directors, we hear this term every time in movies or dramas, but what does it really mean? What role do they play in a company? Before we start diving into the details, make sure you have a full understanding of what a shareholder is so we can better compare both the positions in an organization.  

Directors. Not to be confused with a movie director, a business director is a person that oversees the day-to-day operations of a business. Every business is required to have at least 1 director who permanently lives in Malaysia. Yes, even if you are a foreigner trying to work in Malaysia, you would also need a Nominee Director to start your business in Malaysia.  

If you are a shareholder, you would wonder, will it be possible for a shareholder to be a director. Well, yes, this normally happens in a limited company aka (SME) company, where the shareholder is also the director of a company.  

Decision Making 

Decision Making Inbetween Shareholder and Director
Decision Making Inbetween Shareholder and Director

However, a shareholder will have ultimate power when it comes to decision making as they are the ones who are the beneficial owners of the company.  

You might think that you won’t need any Directors for your company, but that’s not true. What do we mean? Well, click here to understand what happens if your director resigns from your company. 

So, it is safe to say that shareholders will have the final say in decision making compared to a director. Unless of course, you are a shareholder and a director! You can be just that if you start your own business today with us today! Drop us an email at [email protected] for more information!  

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