Who selects one or more individuals to serve as directors, typically at a meeting of shareholders?

Who selects one or more individuals to serve as directors, typically at a meeting of shareholders?

• A. Regulators
• B. CEO
• C. Shareholders
• D. Board of Directors

Answer: (C)

In corporate governance, owners choose the people who will oversee the company by electing the board of directors at the shareholders’ meeting. Shareholders vote on a slate of director nominees, and those voted in become directors who oversee management and guide the company’s strategic direction. The CEO runs day-to-day operations, but the CEO does not select the board; regulators don’t appoint directors in ordinary governance; while boards may propose nominees, the authority to select directors rests with the shareholders.

In corporate governance, owners choose the people who will oversee the company by electing the board of directors at the shareholders’ meeting. Shareholders vote on a slate of director nominees, and those voted in become directors who oversee management and guide the company’s strategic direction. The CEO runs day-to-day operations, but the CEO does not select the board; regulators don’t appoint directors in ordinary governance; while boards may propose nominees, the authority to select directors rests with the shareholders.