Public company chart (1)

1
Public Corporation BOD Sub 1 Sub 3 Sub 2 Sub 5 Public companies often own (directly or indirectly) subsidiar which are separate legal entities through which the company m own property and/or operate its business. Subsidiaries may b domestic (U.S.) or foreign. Sharehold ers Debtholde rs eholders are members he public who own the any. Most shareholders the right (a) to elect the ers of the BOD who see the management of the any, and (b) to vote on major any actions (e.g., the acquisition of her company). Shareholders’ shares me more valuable as a company s profits. Debtholders lend money to the company in exchange for interest payments. Debtholder may include unsecured lenders (e.g. bondholders) or secured lenders (e.g., banks who have made loans to the company). Debtholders do not own the company. The Board of Directors (BOD) of a public company oversees the management decisions of the company and owes fiduciary duties to the shareholders. Members of the BOD are usually also shareholders, but this isn’t legally required. Sub 4

description

a brief description of a public company

Transcript of Public company chart (1)

Page 1: Public company chart (1)

Public Corporation

BOD

Sub1 Sub3Sub2

Sub5Public companies often own (directly or indirectly) subsidiaries, which are separate legal entities through which the company mayown property and/or operate its business. Subsidiaries may be domestic (U.S.) or foreign.

Shareholders Debtholders

Shareholders are membersof the public who own thecompany. Most shareholdershave the right (a) to elect the members of the BOD who oversee the management of the company, and (b) to vote on major company actions (e.g., the acquisition of another company). Shareholders’ shares become more valuable as a company earns profits.

Debtholders lend money to thecompany in exchange forinterest payments. Debtholdersmay include unsecured lenders (e.g. bondholders) or securedlenders (e.g., banks who havemade loans to the company). Debtholders do not own the company.

The Board of Directors (BOD) of a public company oversees the management decisions of the company and owes fiduciary duties to the shareholders. Members of the BOD are usually also shareholders, but this isn’t legally required.

Sub4