Summary the artical Assignment Example | Topics and Well Written Essays - 500 words

Summary the artical - Assignment Example There are special circumstances in which stakeholders are forced to elect new directors mid-term. For instance, if one of the directors passes away, stakeholders can consult state law while seeking to appoint a new director. For formal meetings to be held there has to be a quorum of officials before the conducting of any transactions. In any corporation, the members of the board of directors have different rights. They have the right to participate in all business meetings and operations, carry out inspections, indemnification, and compensation. They serve the stakeholders by furnishing them with corporate dividends, ratifying major organizational policies, overseeing the process of hiring and firing corporate personnel, and determining financial decisions. Below the board of directors in a company’s hierarchical structure are the corporate executives and officers. Corporate officers are expected to be familiar with the rules and regulations of their corporation as they are often tasked with delegating different tasks to other corporate workers. Their responsibilities are quite serious as they can be penalized for mistakes that they or their workers commit. Shareholders are the individuals who own the corporation. They do not take part in running the daily operations of the corporations they invest in but can effect serious changes in terms of the hierarchical structure as well as executive appointments. They exercise their powers by voting for their preferred candidates. Shareholders may hold certificates that outline their ownership status, and are usually awarded stock warrants, pre-emptive rights, dividends, and inspection rights. Professional boards serve a distinct purpose when they are included in different organizations. The collapse of respected financial business establishments triggered a global recession that adversely affect many global citizens and underscored the need for more stringent