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Under the Western corporate structure that was introduced, the chair of the board had the authority to convene board meetings and could remove anyone within the company from their post, except for directors and supervisors. That was because directors and supervisors were not company employees; they were the company’s owners and arbiters.
Major shareholders might convene a general shareholders’ meeting to elect members of the board of directors.
The chair of the board was elected by the board itself and must obtain the approval of more than half of the directors.
In general terms, the shareholders’ meeting determined the composition of the board, while the board held the company’s decision-making power, and the number of shares determined one’s influence within the shareholders’ meeting. That was because the more shares one had, the greater the risk borne, and thus the greater the say.
At times, a major shareholder would serve as the chair of the board, thereby controlling both the shareholders’ meeting and the board. This created the illusion that the chairman was the most powerful position.
This was like the fifth-generation Grand Master controlling the Golden Tower Council because no one dared to oppose him. But the sixth-generation...
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