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.