Ndubuisi 'Andy' Egwim explains that shareholders — not the CEO — own a company; shareholders vote and elect a board of directors, which represents them and can fire the CEO. He illustrates with a hospital example: initially 20 owners each holding one share, and an alternative scenario of 1,000,000 shares. He also notes the company was valued at £1 million at founding.
You, the shareholder, the owner, and you, the shareholder, decide what happened. That's why when they go for shareholders meeting, I go and I vote. That's why there's board of directors. They are representing shareholders and board of directors can fire the CEO because you own the company. Now, let's say back to this hospital. There are 20 owners, and the 20 owners each own one share. Does that make sense? They own one share. Good. Now, let's assume that instead of each of them owning one share, there are 1 million shares in the hospital. They said, now, the value of this company when we started it out was £1 million. So we're going to say the value at that point when it was valued is £1 million. I know now we are making £1 million per year, but at the beginning it was £1 million.
