Question

identify the different ways corporate directors are elected to office.

Answer 1

There are many ways through which directors can be elected to the office;

· When the company is formed and registered with the registrar for the first time, the directors have to appointed, their names are registered in the directory of the registrar and the company memorandum of association. They are held accountable for the activities of the company.

· Every company has an annual general meeting at least a year and the directors can be elected during the annual general meeting of the company with the support of the shareholders in the meeting. In the annual general meeting of the company some of the members retire and some are elected.

· The directors can be elected at the decision of the board of directors, in this normally the chair of the board conducts the process of election of any individual for the position of the directors.

· In most countries, government in order to ensure that the interest of the small stakeholders is taken into account, government insist on having some independent directors on the board and hence government can appoint directors on the company to protect the interest of minority shareholders.

· The directors can be appointed by the shareholders of the company. Normally the large shareholders of the company appoint directors on behalf of them who are supposed to take care of the interest of theses shareholders.