Shareholders have the right to instruct directors or top managers how to run the corporation.

Question

Quizplus · Accepted Answer

Shareholders elect directors to represent their interests and make decisions on their behalf. Directors appoint top managers to carry out their strategic direction. Shareholders do not have the direct right to instruct directors or top managers on how to run the corporation, but they can exercise their power as owners through voting and other means of influencing decision-making.

Shareholders Have the Right to Instruct Directors or Top Managers