Electing Directors

The third segment of an annual meeting is to elect Directors for the coming year term. The term would be one year from the date of the Shareholders meeting. Directors are just that. They direct the company. They have skills that many Officers do not have, due to the Officers are doing the daily grind of the business. Directors are taking a birds eye view of the company, its industry, its competition, and its ability to merge with another company if the situation becomes apparent. Directors of a company can be compared to directors of movie films. They are there watching what is going on, from a third party perspective, so they are able to see the results differently than the Officers and employees.

Directors are the Captain of the ship. They are looking ahead of the front of the ship to beyond the horizon. They keep up with the industry and what is happening globally, so they can change the way the company is running, if it is not in its best interest. Officers may or may not be directors. In a non public company, they can assume the duty of both, an Officer and a Director. Unfortunately, this does not give the company leverage with its shareholders. It is more of the same mentality. It is very difficult for an Officer to be able to see past the problems at hand, and forecast and plan for the future.

You will need to appoint Directors that are not in a conflict of interest to the company. You will not be able to pick your accountant, your spouse, your lawyer. You will need to find people who can be objective when it comes to how the business should direct itself. People you work closely with, may not have the company’s best interest at heart.

Directors will direct the business during the next year, checking corporate state and federal tax returns, monthly financials, stock issuance, loans, pension or profit sharing plans, bonus’, acquisitions, or purchases. As a Shareholder you do not have control over that unless you give up your Shareholder status and request a buyout.