ABSTRACT
This chapter discusses the process of shareholders’ decision-making. Shareholders are not responsible for the day-to-day running of the company. This means that most decisions in a company are taken by directors under their powers of general management in the articles of association. Directors are often shareholders too. Sometimes in very small companies it can be confusing for a businessperson to know in what capacity they are acting. Broadly speaking, the board of directors will make most decisions, but certain important decisions will be reserved for shareholders. Some decisions must be made by shareholders because of the Companies Act 2006, and others because they are stipulated in the company’s articles.
