question.jpgIn Business Law

How are corporations controlled and managed?

Corporations are not generally controlled by their owners (the shareholders) as most other business forms are. Instead, corporations are generally controlled by representative management, where there is one or more appointed managers who handle the management of the business. Specifically, there is a board of directors which is initially selected by the incorporator and thereafter voted into the position via shareholder elections. The directors are the ultimate governing body of the corporation, making all of the major decisions. The directors will also appoint certain officers who run the corporation on a day-to-day basis. There are a variety of positions which the board can set officers up as, including CEO, CFO, COO, secretary, treasurer, vice-presidents, etc.