Practicing Success
Why do shareholders elect a Board of Directors for a company? |
To replace the shareholders as owners To directly manage the company's affairs To represent the shareholders and manage the company To compete with other companies |
To represent the shareholders and manage the company |
The shareholders elect a Board of Directors to ensure that their interests are protected and to have a group of individuals who make important decisions on behalf of the company, while also overseeing its operations and management. The Board of Directors acts as a representative body for the shareholders, making decisions that align with the shareholders' interests and ensuring the effective management of the company. |