What is generally considered a responsibility of shareholders in a limited company?

• A. To manage day-to-day operations
• B. To pay the company’s debts
• C. To vote on major company decisions
• D. To personally guarantee loans

Answer: (C)

Shareholders in a limited company have specific responsibilities, and one of the primary roles is to vote on major company decisions. This responsibility allows shareholders to influence key aspects of the company's operations, such as the appointment of board members, approval of mergers and acquisitions, and changes to the company's bylaws. Through their votes, shareholders can assert their interests and perspectives on the direction of the business, thus holding management accountable.

In contrast, managing day-to-day operations is typically assigned to the company's management team rather than the shareholders. Shareholders are also not responsible for the company’s debts due to the limited liability nature of their investment, which protects personal assets. Additionally, shareholders do not usually engage in personally guaranteeing loans for the company, as this would contradict the limited liability principle that shields them from personal financial risks linked to the company’s obligations. Therefore, the role of voting on major decisions is crucial as it empowers shareholders to have a say in the company's governance and strategic direction.