That is, they formulate policy, and they appoint officers to carry out that policy. This traditional allocation of powers usually may be modified by the corporation where appropriate. This is often done in the case of closely held corporations. They have the power to elect and remove directors .
Shareholders normally elect the directors at the annual meeting of shareholders.
In other words, directors normally serve a one-year term. Shareholders usually have the right to elect directors to fill vacancies on the board, but the board of directors also usually has this power. At common law, shareholders had little power to remove a director during his term of office. But today, most statutes allow the shareholders to remove directors even without cause . The shareholders can amend the articles of incorporation or the bylaws .