In theory,shareholders select the board of directors,but in reality,management effectively selects the directors.

Question

Quizplus · Accepted Answer

While shareholders technically vote to elect the board of directors, management often recommends a slate of candidates for the board, making it difficult for shareholders to select an alternative group. Additionally, management often wields significant influence over the board's decisions, leading to the perception that management effectively selects the directors.

In Theory,shareholders Select the Board of Directors,but in Reality,management Effectively