Although the shareholders invested in the company, they did not have the ability to interfere in the management of the company. To protect their interests as shareholders of the company, the Board of Directors was created. The people on the board were elected by the shareholders. These people must have the experience, ability, and contributions to the Wen Corporation before being elected.
As such, those who were able to be on the Board of Directors were the Wen Corporation's elites, and the Board was where the core and heart of the company resided.
Those elected were the spokesmen of the shareholders in the company. The shareholders shared their views and thoughts through the Board. The Board of Directors partook in the operations of the company. Hence, they were well-versed in the management of the company. They were able to accurately grasp the condition of the company at any time and could protect the interests of shareholders the most.
