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In general terms, the principals of a corporation are the owners or investors, referred to as shareholders or stockholders. The agents of the corporation are generally considered to be the board of directors, officers or other persons the corporation authorizes to act on its behalf.
Although pronounced alike, the words are not interchangeable in writing. A principle is broadly âa rule of action or conductâ (His overriding principle is greed) or âa fundamental doctrine or tenetâ (Their principles do not permit the use of alcoholic beverages). The adjective principal has the general sense âchief, first, foremostâ: My principal objection is the cost of the project.