ACCA SBL Syllabus B. Governance - SMEs and stakeholder interests - Notes ^{4 / 6}

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