Who is primarily responsible for managing the affairs of a company?

The primary responsibility for managing the affairs of a company lies with the directors. Directors are appointed to oversee the day-to-day operations and to make strategic decisions that affect the company’s direction and performance. They have a fiduciary duty to act in the best interests of the company and its shareholders, ensuring that the company complies with legal obligations and manages its resources effectively.

Directors typically set company policies, supervise management, and report to shareholders, balancing the interests of different stakeholders while aiming to achieve the company's objectives. This role as managers grants directors the authority to make decisions regarding the business operations, finances, and overall governance of the company.

In contrast, shareholders are the owners of the company but are not involved in day-to-day management. They elect directors and have ultimate control through their voting rights but do not engage in daily operations. Creditors, while important to the financial health of the company, primarily focus on the repayment of debts and do not have a role in the management. Regulatory bodies provide oversight and enforce compliance with laws and regulations but do not manage company affairs directly.