Choosing officers from among the directors tightens the board's control of the corporation and may also make the corporation more responsive to the shareholders since shareholders elect the directors from whom the officers are selected. If the corporation wants to reward its supporters with titles, however, it is certainly possible to create numerous assistant vice presidents and so forth. But the organizers should consider carefully how many officers are really needed. It is not advisable to create unneeded officers since outsiders might erroneously assume that they are in positions of power and may attempt to do business with them. The bylaws should provide the manner by which officers are selected.
Most corporations have their board of directors elect the officers at the board's annual meeting.
Although in a few states officers may be selected directly by the shareholders of a small corporation. The president, vice president, secretary and treasurer should be elected by the board in a manner and at the time as provided in the bylaws. Additional officers may be selected by other methods, however, including election by the shareholders. If officers must meet certain qualifications, these should be expressed in the bylaws. The corporation should be able to dismiss a misbehaving officer and, therefore, some provision for dismissal of officers should be included in the bylaws.