<P> In an organization with voting members , the board is accountable to , and might be subordinate to , the organization 's full membership , which usually vote for the members of the board . In a stock corporation , non-executive directors are voted for by the shareholders and the board is the highest authority in the management of the corporation . The board of directors appoints the chief executive officer of the corporation and sets out the overall strategic direction . In corporations with dispersed ownership , the identification and nomination of directors ( that shareholders vote for or against ) are often done by the board itself , leading to a high degree of self - perpetuation . In a non-stock corporation with no general voting membership , the board is the supreme governing body of the institution ; its members are sometimes chosen by the board itself . </P>
<P> In an organization with voting members , the board is accountable to , and might be subordinate to , the organization 's full membership , which usually vote for the members of the board . In a stock corporation , non-executive directors are voted for by the shareholders and the board is the highest authority in the management of the corporation . The board of directors appoints the chief executive officer of the corporation and sets out the overall strategic direction . In corporations with dispersed ownership , the identification and nomination of directors ( that shareholders vote for or against ) are often done by the board itself , leading to a high degree of self - perpetuation . In a non-stock corporation with no general voting membership , the board is the supreme governing body of the institution ; its members are sometimes chosen by the board itself . </P>
who elects the board of directors for a publicly traded company
who elects the board of directors for a publicly traded company
the shareholders
the shareholders