What is the organizational structure of a C corporation?
A. The organizational structure of a C corporation relies on three basic groups: shareholders, directors and officers. A C corporation is owned by shareholders; however, they do not directly manage the C corporation. Instead, they influence corporate decisions through indirect methods such as electing and removing directors, approving or disapproving amendments to the articles of incorporation and voting on major corporate issues. The directors, who comprise the board of directors, are responsible for managing the affairs of the C corporation. Usually, directors make only the major business decisions. They also appoint and supervise the officers, who make the day-to-day business decisions of the C corporation. Officers are responsible for the everyday management of the C corporation. It is important to note that a shareholder may serve on the board of directors and as an officer.
A. The organizational structure of a C corporation relies on three basic groups: shareholders, directors and officers. A C corporation is owned by shareholders; however, they do not directly manage the C corporation. Instead, they influence corporate decisions through indirect methods such as electing and removing directors, approving or disapproving amendments to the articles of incorporation and voting on major corporate issues. The directors, who comprise the “board of directors,” are responsible for managing the affairs of the C corporation. Usually, directors make only the major business decisions. They also appoint and supervise the officers, who make the day-to-day business decisions of the C corporation. Officers are responsible for the everyday management of the C corporation. It is important to note that a shareholder may serve on the board of directors and as an officer.
