SMEs and stakeholder interests 4 / 5

Here, often, shareholders are not different from directors

Differences to a listed company

  1. Often Family owned

  2. Often no separation between management and owners

  3. Little differences between owner and director objectives

  4. Smaller number of shareholders - who are often in contact with the company - so conflict less likely

In a listed Company it's different..

  • Objectives of shareholders and directors may be different

  • Asymmetry of information

    Shareholders get less info than directors, making monitoring harder

  • A separation between ownership and control

    Shareholders and directors are different people