How are directors typically elected in a corporation?

Directors in a corporation are typically elected by shareholders during the annual meeting. This process is integral to corporate governance, as it allows shareholders, who are the owners of the corporation, to have a say in who will represent their interests on the board. Shareholders vote on a slate of candidates, and the election process is often accompanied by proxy voting, where shareholders can authorize someone else to vote on their behalf if they are unable to attend the meeting.

The election of directors is not conducted by the board of directors themselves, nor is it overseen by a government entity or decided by management through a majority vote. Instead, it emphasizes the democratic aspect of corporate structure, ensuring accountability and alignment with the interests of the shareholders. This system is designed to prevent any one group, including current board members or management, from exerting undue influence over board composition without the consent of the shareholders.