What is the difference between a shareholder, director, officer and employee?



Shareholders hold ownership of the corporation in the form of shares.


Directors are responsible for supervising the activities of the corporation and for making decisions regarding those activities.


Officers are responsible for the day-to-day operation of the corporation.


"Employed" defined in subsection 248(1) of the Income Tax Act means performing the duties of an office or employment and "employee" "includes an officer." Consequently, a director of a corporation is an employee.

Therefore, an individual can be the sole shareholder, director, officer and employee of a corporation.