In: Accounting
The stockholders control a corporation by electing a board of directors.
In a corporation whether it is large company or a small business the rules governing the corporate business structure must be followed.as the owners of a small corporation, the shareholders should be aware that under the rules they have a limited say in how the company is run.the votes at a shareholder meeting let the owners express their will on the management of the business
Elect Board of Directors
The most important vote that shareholders of corporation make is to elect the company's board of directors. A corporation must have a board and members of the board of directors set goals and provide guidance on how the company will be managed and run. Once the shareholders have selected a Board,the directors as a group then vote on proposition that come before the board. Individual members of the board of directors have no power on their own. Corporate rules require that the board of a corporation act as group for the benefit of the shareholders.
Board of Directors Functions
The primary duties of a corporate board of directors is to select and guide the top management of the company. It is the board and not the shareholders who select the individuals who will actually manage the company. The board will name the people for positions of chief executive officer, chief financial officer and other"c" levels positions the company may have. The board has the right to change out upper management if it is believes the interest of the shareholders are not being served