When and why does a company require a board of directors? How come it can sometimes overrule or even push out the owner?
In: Economics
A board of directors comes into play when the company goes public usually. And at that point, there isn’t any 1 owner, there are many many owners. Because at the point where a company goes public then anybody who owns a share of the company is an owner.
They can push out the founder of a company because the founder no longer controls the company, it’s public, so the public controls the company. Well, the public that owns shares in the company. If they don’t like what the founder is doing any more, they can fire them.
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