Question

How is a corporation’s board of directors chosen? Explain the role the board plays in a corporation’s management.

What steps are involved in starting a general corporation?

Answer 1

A corporation's board of directors are chosen by corporation bylaws. They set how board of directors would be selected. Generally, the board of directors are elected by elections and voting rights is given to shareholders.

Role of board of directors plays in a corporation's management:

• They establish corporation goals,vision and mission.
• They recruit, supervise, retain, evaluate and compensate managers.
• They devise various policies related to corporation.
• They monitor and control the various functions of the corporation.
• They devise different business strategy.

Steps involved in starting a general corporation.

• Choosing a legal name for corporation, checking its availability and reserving the name for corporation
• Choosing director for corporation, creating and signing of all the articles of incorporation with State of Secretary
• Creating shareholder agreement, issuing stock certificate to the initial shareholders.
• Applying for business license and other permits
• Open separate bank account for corporation and obtain IDs for taxation and other purpose as per nation.
• Hold first meeting of board of directors to establish the goals, vision and mission of the corporation.