Where shareholders are not the same people as the directors and the officers, one of the ways that shareholders ensure that directors and officers manage the corporation in a manner which most effectively promotes shareholder interests is through their power to elect the directors.

Question

Quizplus · Accepted Answer

Shareholders have the power to elect the directors of a corporation, and this is one of the ways in which they can ensure that the directors and officers manage the company in the best interests of the shareholders. This is a basic principle of corporate governance.

Where Shareholders Are Not the Same People as the Directors