Corporate and Business Law > FAQ about Shareholders, Directors and Officers.

What is the role of the Shareholders?

The shareholders pay for the stock and elect the board of directors.

What are the functions of the Board of Directors?

The Board of Directors is the management body for the corporation. Responsibilities of the Board of Directors include establishing all business policies and approving major contracts and undertakings. Board also elect the President and other officers. Ordinary business practices of the corporation are carried out by the Officers and employees under the directives and supervision of these Directors. Directors may only act at a Board of Directors meeting. For a Directors' meeting to be valid, there must be a Quorum of Directors present. The Board of Directors must meet on a regular basis. In the first meeting of the Board of Directors, Bylaws, the Corporate Seal, Stock Certificates and Record Books are adopted.

How many Directors, Shareholders and Officers does a corporation need?

Most states allow one individual to hold all offices.

What are the functions of the Corporate Officers?

The President: Has the overall executive responsibility for the management of the corporation and is directly responsible for carrying out the orders of the board of directors. 
The Treasurer: Chief financial officer of the corporation and is responsible for controlling and recording its finances and maintaining corporate bank accounts.
The Secretary: The Secretary is responsible for maintaining the corporate records.