Yes, companies with no promoter holding are managed by professionals. The SEBI regulations require a minimum 25 per cent of public shareholding but there is no legal requirement of minimum promoter group holding. There are instances of companies with no promoter holding and the companies can be professionally managed.

Promoters are the investors in the company. They are the owners of the company and have the right in profits of company. Directors are the managers of company who manage the day to day operations of the company.

A corporate promoter is a firm or person who does the preliminary work related to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed.

Promoter is the one who promotes the business and raise the funds through IPOs. Director is the one responsible for business execution and decisions. However director do not have rights on the profits of the company and will only be paid through salary.

Typically, the promoters are the shareholders of the company at the time of incorporation i,e. they are the first subscribers to the Memorandum of Association (MoA) of the company. Shareholders the ones that are owners of the company, who hold shares of the company. Shareholders need not be promoters of the company.

One is where we have the promoter himself as the CEO and he works with other professionals. This is a model that seems to work and the promoter runs the company with the help of other professionals who may be CFOs or head of HR.

Promoters may not be a Director of a company. For unlisted companies subscribers to the MOA are the promoters. Unlisted companies do not have role of promoters in their operations. In the case of listed companies there are the Promoters, Board of Directors, investors and regulations of SEBI.

In a publicly held company, directors are elected to represent and are legally obligated as fiduciaries to represent owners of the company—the shareholders/stockholders.

Oftentimes the Managing Director is part of the board of directors. They work closely with the board to create policies and strategies for the success of the company. A Managing Director’s role isn’t written in stone, and can also involve aspects of a COO’s role or a vice president’s role too.

To avoid confusion between the CEO and an owner, the CEO can be the owner of the company but not all the time. Owner is the generic term for sole proprietorship while CEO is a title or position given to someone who has complete management responsibility of the company he is working in.

Rank: The chairman holds the top position on the board of directors or board of trustees. The CEO holds the top position in the operational structure of the company. Reporting: The chairman directly manages the company’s board members. The CEO directly manages the company’s senior executives.

the Chairman

The chairman of a company’s board of directors is superior to the CEO. As head of the board, the chairman holds considerable sway over how the board votes on decisions proposed by the CEO. Typically, however, a company’s CEO and chairman work together to co-lead the company.