Who reports to the shareholders regarding company finances and governance?

The role of directors is crucial when it comes to reporting to shareholders about company finances and governance. Directors are responsible for overseeing the management of the company and ensuring that it operates in the best interests of the shareholders. They prepare annual reports, which typically include financial statements, strategic insights, and governance practices.

These reports provide shareholders with a summary of the company’s financial performance, operational developments, and compliance with regulatory requirements. Directors present this information in an accessible format, enabling shareholders to make informed decisions regarding their investments.

While internal auditors, accountants, and external auditors play important roles in the financial reporting and governance process, they do not report directly to shareholders. Internal auditors focus on the effectiveness of internal controls, risk management, and compliance within the organization. Accountants handle the day-to-day financial record-keeping and preparation of financial statements. External auditors provide independent assurance on the accuracy of financial statements but report their findings typically to the board of directors or audit committee, not directly to shareholders.