Sunday, April 4, 2010

Corporate Structure Continued


The Board of Directors is elected by the shareholders, and is comprised of two types of representatives: insiders who have worked and still work for the company every day, as manager or other job like CEO or CFO. The second type of member of the board comes from the outside; chosen externally and independent of the company. In this way the board can monitor the performance of the managers of the corporation, making sure that the interests of the stockholders is protected.