What do shareholders' meeting and board of directors mean? How to distinguish?

As we all know, Wang Shi, founder of Vanke, was kicked out of the board of directors, and Dong Mingzhu, chairman of Gree, was also removed from the post of chairman of the group. We often hear what the shareholders' meeting looks like and what the board of directors looks like. What is the difference between shareholders' meeting and board of directors?

Shareholders' meeting-The shareholders' meeting is the highest decision-making body of the company. As the name implies, it is an institution composed of shareholders of the company. In the simplest terms: it is an organization composed of people who pay money to the company. When they pay the money, they will definitely feel that the company is their own. What should they do when they have different opinions? The simplest and most direct way: vote! The principle of voting is also very violent: whoever pays more has the final say! In more professional terms, this vote is not calculated by people, but by shares. There are two more important figures, one-half and two-thirds.

If the company wants to amend the articles of association, it needs the consent of more than two-thirds of the shareholders. In other words, if you own 80% of the company's shares, then you say you want to modify the company's articles of association, OK! As long as you agree, it is ok; If you own 30% of the company's shares, you need to unite the remaining 37% (two thirds is about 67%). If you agree, then you can modify the articles of association. Of course, except for the very important matter of amending the Articles of Association, all other matters need to be approved by 50% of the shareholders.

The board of directors-the daily decision-making body of the company. Many times, the shareholders of the company are not in one place, which is not convenient for meetings. So what should we do? Then shareholders will select some people to form an organization-the board of directors to handle some daily decisions. The board of directors is composed of directors. Responsible for the company's affairs internally and represent the company's business decision-making body externally. Directors are generally not lifelong, but have a fixed term of office. One rule is more important: before the term of office of a director expires, the shareholders' meeting shall not dismiss him without reason. This protects the board members to some extent.

So what if the board of directors has different opinions when making decisions? Or the easiest way: vote! But unlike the shareholders' meeting, the voting of the board of directors is based on the number of heads, one person, one vote. Some people may think, what should we do when the number of people supporting and opposing is the same? I can tell you here: you think too much! Because the number of directors of general companies is odd, there is generally no situation in which two parties have the same number of votes.

If you want to run a company, it is not enough to have a good entrepreneurial project and high morale. If you don't know something about company organization, you may be cheated by your former partners Shi and Dong Mingzhu!