What is the organizational structure of a Private Limited Company?
A. The organizational structure of a Private Limited relies on three basic groups: shareholders, directors and officers. A Private Limited Company is owned by shareholders; however, they do not directly manage the Company. Instead, they influence corporate decisions through indirect methods such as electing and removing directors, approving or disapproving amendments to the articles of association and voting on major corporate issues. The boards of directors are responsible for managing the affairs of the Company. Usually, directors make only the major business decisions and supervise and appoint the officers who make the day-to-day business decisions of the Company. Officers are responsible for the everyday management of the Company. Typically, officers are appointed directly by the board of directors. It is important to note that a shareholder may serve on the board of directors and as an officer.