Who is primarily responsible for the management of a company’s affairs?

The board of directors is primarily responsible for the management of a company's affairs because they are appointed by the shareholders to oversee the company's operations and make strategic decisions on behalf of the organization. This governance structure allows the directors to act in the best interests of the shareholders, ensuring that the company is run effectively and adheres to its objectives.

The responsibilities of the board of directors include setting overall policy, ensuring an appropriate organizational structure is in place, and appointing senior management to carry out the day-to-day operations. They are accountable for both the performance of the company and ensuring compliance with the law and regulations. This fiduciary duty to manage affairs encompasses both strategic decision-making and operational oversight, making the board crucial in guiding the company's direction.

While shareholders have ownership stakes and their voices are significant in major decisions like electing directors or approving significant corporate changes, they do not directly manage daily operations. Auditors are involved in reviewing the company’s financial statements and ensuring compliance with relevant laws but do not engage in management. Legal advisors provide essential counsel on legal matters but do not participate in the management of the company’s affairs.