In most cases, a business owner holds the majority of the stocks, which means she or he has the ability to overrule minority stockholders. As the majority stockholder, it is assumed the business owner incorporated the business mostly as a limited liability institution and invited other stockholders to invest.
The direction of the business will therefore be driven by the business owner, including the day-to-day running of the business, chairing of board meetings, developing and managing the strategic plan, the marketing plan, the budget, and steering the business to achieve the overall goals and objectives.
All these plans will have been formulated at the incorporation of the business. As the business expands and becomes successful, the business owner could give up some stocks. For example, if at business incorporation the business owner held 75% stocks, she or he can give up 24% stocks and offer them to potential investors but still retain 51% and remain the majority stockholder.
Eventually, the business owner could choose to hand over management of the company to a neutral person, thereby stepping down as the Chief Executive Officer. This allows the company now to grow well beyond the initial vision and of the business owner, which is often the best strategy in business growth.
When this happens, the business now acquires a life of its own with strong systems and structures that are not dependent on the business owner.