Action to Ensure Authority to Issue Form

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all right let's begin module four all right welcome back for module four module four regards corporate authority so as you learned in the other modules shareholders might own the corporation but the directors run it and so directors have the authority to run the corporation and they can delegate that authority to others and it's actually somewhat complicated because uh delegation authority creates agency problems and so we're going to look at a couple cases first sort of explain the issue and then we'll back into some principles let's start by discussing again who runs a company so shareholders do not run a company shareholders own a company their owners and the directors who are the fiduciaries are responsible for running the company although they may appoint such as the ceo or cfo to run day-to-day affairs and they may run make only high-level decisions like appointing those individuals and of course there are employees in the company as well who are responsible for many of the actio