McLennan​​
Consulting

Incorporating good ideas.

What's the difference between an Officer and a Director?

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Imagine your Company is a Province.  In this model, three elements to how a province functions:

  1. Elected government;
  2. Bureaucracy; and,
  3. Voters.

Directors are the elected government that are voted in by the members of the public, who, in your Company's case, are the Shareholders.  The Directors make the big policy decisions that will guide the course of direction the company will move in the same way elected governments make policy decisions on how a province is run.

The Shareholders are  the voters. Although they elect Directors, they aren't involved in the policy choices or bureacracy.

The Officers, who are appointed by the Directors, are the bureaucracy -- the police, tax authority, planning department, etc.   They carry out the day-to-day operations of the business based on the policies of the Directors.  They hire and fire employees, find new expansion locations, manage payroll, etc.

Directors are required under s.120 of the BCBCA  which states that a Company must have at least one director and in the case of a public company, three.

There are no requirements that a company must have an Officer and in the case of most small businesses, it is an unnecessary designation that is perhaps most useful in terms of optics for your business card and contact page on your website.

Standard Officer titles include:

  1. Chief Executive Officer (CEO);
  2. President;
  3. Chief Financial Officer (CFO);
  4. Chief Operations Officer (COO); and,
  5. "Vice" anything, like Vice President.

Officer titles are endless and people can get really creative with them.  For a list of standard titles, visit Wikipedia:  Officer Titles

BUT COME ON, GET CREATIVE!

You could be "Director of First Impressions", or "Chief Evil Overlord", or "Vice Data Wizard" ... really, 

If I were to designate myself an Office title in my capacity of the Corporation of my household, I could be:

~Jillian McLennan, Chief Cook and Bottle Washer, President of Perpetual Laundry or Commander of Commode Scrubbing