owner should bring honor to the house, not the house to its owner. Cicero
of an organization exercise the ultimate control. They may benefit from the
efforts of it, either by receiving an income or from the proceeds of its sale or
of commercial organizations include individual proprietors, partners, private
shareholders and institutional shareholders such as investment and pension
funds. The amount of control which they exercise varies and is often limited
by their ability to agree and act together. In practice, control actually
resides with the senior management.
of a non-commercial nature (charities, schools, hospitals, local or
central government) have a different concept of ‘ownership’. The legal
owners (exercising control) could be trustees, governors, commissioners or
elected representatives. The beneficial owners (who receive the proceeds on the
dissolution of the organization and the disposal of its assets) are usually
different from the legal owners and may be another charity, local or central
government or some other body.
Motives of ownership: The motives and assumed responsibilities of ownership vary
according to the type of organization:
do most of the work, assume the risks and
take responsibilities and for this reason try to retain control.
may just want to receive a steady income over the years or see the value of
their shares rise.
of a charity may act from a sense of public duty, kudos or derived status.
of a partnership or mutual association share the profit without
it being dispersed to other parties.
v managers: The
managers and the owners should both have the ultimate success of the
organization in mind. However, there could be a conflict of interest - the
managers of a business wanting to build it up steadily and soundly, while the
shareholders wanting fast growth to make a capital gain. Similarly, trustees
of a charity are often cautious and exasperate managers by taking too long to
reach decisions and failing to support innovative ideas. In some instances it
may be difficult to discover who the owners actually are - they may only be
apparent when the organization is dissolved! >>>