February 22, 2017

Homework Help: Finance (board of directors)

Posted by Jason on Friday, July 25, 2008 at 12:39pm.

A corporation's board of directors

A. is selected by and cna be removed by management
B. can be voted out of power by the shareholders
C. has a lifetime appointment to the board
D. is selected by a vote of all corporate stakeholders

I read in the text book that a board of directors is appointed by the original stockholders and stockholders are the owners of the company, so (A) is not possible.

(B) is vague because a large public corporation may have millions of stockholders and I think in order vote a member of the board in or out of power a million person stockholder vote is ridiculous.

(C) has a lifetime appointment to the board....once again ridiculous, I can't think of anybody that his a lifetime position other than a parent or monarch.

So that leaves (D) .... Is D correct?

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