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Answer:  According to Section 136 of Commercial law, a shareholder is a person who owns one or several shares in a company. According to Section 221 of the law, the board of directors is the executive body of the company, which manages and represents the company. Pursuant to Section 224 of the law, members of the board of directors shall be elected and recalled by a decision of the meeting of shareholders. By means of electing the board, shareholders vest the board with certain power, i.e. to manage the company. The Commercial law does not provide that representation of the company and performing transactions is within the competence of shareholders.  

The meeting of shareholders is the administrative institution of a company, however, in order for a shareholder to administrate the company he shall participate at the meetings. According to Section 210 of the Commercial law, a shareholder may participate in the administration of the company personally or through authorized representative. Shareholder may not intervene in the activity of a company other than as provided above.   Meeting of shareholders administer the company by means of taking decisions. Shareholders’ meeting is not entitled to execute the decisions taken due to reasons that execution is within the competence of the board. 

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