Where Shareholders Are Not the Same People as the Directors

question 38

True/False

Where shareholders are not the same people as the directors and the officers, one of the ways that shareholders ensure that directors and officers manage the corporation in a manner which most effectively promotes shareholder interests is through their power to elect the directors.

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Definitions:

Unconstitutional

Actions, laws, or policies that do not conform to the principles or provisions outlined in a country's constitution, thus deemed invalid or illegal.

Codes of Fair Competition

Regulations or standards designed to ensure fair practices in business and industry, often relating to labor and trade.

Railway Labor Act

A United States federal law that aims to substitute bargaining, arbitration, and mediation for strikes in resolving labor disputes in the railway and airline industries.

Government Mediation

A conflict resolution process where a neutral third party facilitated by the government helps disputing parties to find a mutually agreeable solution, often used in labor disputes.