Question

State whether the following statement is true.

Every member of a company is entitled to take part in its management.

Answer 1

This statement is false.

Explanation:

Shareholders own the company but do not manage its daily operations due to the separation of ownership and management. Instead, they elect a Board of Directors to run the business on their behalf. Ordinary members participate only indirectly, voting on major decisions at official meetings, so they have no direct right to handle day-to-day management.