Doctrine of Centralized Management Flashcards
1
Q
What is the doctrine of centralized management?
A
The doctrine of centralized management means that corporate powers are vested in a body called board of directors for a stock corporation, and board of trustees for a non-stock corporation. Except in those instances where stockholders’ or members’ approval is required for certain acts under the Corporation Code, it is the board which exercises corporate powers. The stockholders or members, regardless of number, will have to delegate the power to manage the corporation to the board.
