---
title: What is the difference between Shareholders and Directors in a C-Corp?
description: Learn how shareholders and directors differ in a C-Corp, from ownership rights to management responsibilities.
---

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# What is the difference between Shareholders and Directors in a C-Corp?

In a **C-Corporation**, shareholders and directors have distinct roles within a more hierarchical structure than an LLC:

- **Shareholders:** Owners of the corporation who hold stock (common or preferred). They vote on major decisions and elect the board of directors.
- **Directors:** Elected by shareholders to oversee the corporation’s strategy and governance. They set policies and appoint officers to manage daily operations.

**Key Point:** Shareholders own the company, while directors manage and guide it.

### **![](https://help.globalfy.com/hs-fs/hubfs/undefined-Feb-20-2026-01-51-56-7883-AM.png?width=670&height=36&name=undefined-Feb-20-2026-01-51-56-7883-AM.png)**

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