Question

In an annual report, who writes the letter to shareholders and what purpose is served by the letter?

Answer 1

Management writes the letter to the Shareholders through its top executive.

These top executives will be including chief executive officer and chief financial officer along with other directors of the company who are representative of the board of directors.

Purpose of the annual report is to make sure the shareholders, about continuous performance of the company on the financial front and the achievement of various objectives of the company, and striving towards achievement of the vision and mission of the company

It is also focused to communicate that the management is strived towards protection of the interest of the shareholders and maximization of overall wealth of Company.