Wednesday, June 09, 2021 3:28:59 PM
Shareholders' Role
Even though shareholders do not have direct control over the corporation, they do have some indirect control. Shareholders can vote to elect and remove directors, approve fundamental changes in the corporation’s structure, and adopt or modify the corporation’s bylaws. In the event that the directors or officers of a corporation breach their fiduciary duties to the shareholders, shareholders may bring a direct lawsuit against the directors or officers.
Even though shareholders do not have direct control over the corporation, they do have some indirect control. Shareholders can vote to elect and remove directors, approve fundamental changes in the corporation’s structure, and adopt or modify the corporation’s bylaws. In the event that the directors or officers of a corporation breach their fiduciary duties to the shareholders, shareholders may bring a direct lawsuit against the directors or officers.
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