Shareholders are the owners of the company. They invest their money and also undertake risk. Therefore, the company owns responsibilities to its shareholders as mentioned below :-
- To provide good and regular return on investments.
- To earn profit and bring financial soundness to the company and the investors.
- To make planning for the growth, stability and progress of the company.
- To give information about finance to the shareholders by providing annual reports, director's report, profit and loss account, balance sheet, etc.
- To build and maintain goodwill of the company in the eyes of society.
- To make proper use of funds of shareholders.
- The directors should not make reckless speculation, i.e. unfair practice on the stock exchange and manipulation to increase the price of the shares.
- To assure steady growth of the investment by appreciation in the market value of shares.