Najma Haneefa
Legal Consultant| Civil & Criminal Litigation| Arbitration| Contract Drafting| Legal Research|
Published Jul 17, 2023
Separation of ownership and management is the idea that the owners of a corporation are separate from the individuals who run and manage the day to day business of the corporation. The corporation can be managed by a team of skilled professionals that allows for specialization and expertise in each area. The separation allows owners to focus on investing and generating returns while managers focus on running the company and maximize its value. The ownership can be transferred to another share holder without disturbing the operations of the corporation. The separation provides a system of checks and balances to ensure that management act on the best interest of share holders. Overall, the separation of ownership and management in a corporation brings sustainability, efficiency, and objectivity which can lead to better performance of the corporation.
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