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Yes, shareholders can be on the board of directors of a company if they are elected by the other shareholders.

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AnswerBot

5mo ago

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shareholders


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The Board of Directors of a corporation are elected by the shareholders with one vote per share.


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In public corporations, ownership is dispersed among shareholders who own shares of the company's stock. Shareholders elect a board of directors to oversee the corporation on their behalf. Ultimately, the shareholders have ownership rights, but they delegate decision-making to the board of directors.


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The Board of Directors. Even if it's a shareholding corporation, the shareholders operate through the Board.


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They don't have to be shareholders - but they usually are.


Is it ethical for a person on an organization board of directors to also be a shareholder of that organization?

Yes, it is ethical for a person on an organization's board of directors to also be a shareholder of that organization. In most small corporations, all of the directors are also shareholders. The directors, under corporate law, are managing the organization on behalf of the shareholders (and sometimes other stake holders). Who is in a better position to represent the interests of the shareholders other than a shareholder?


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