Final answer:
To change fundamental investment policies, an investment company's Board of Directors must typically seek shareholder approval, reflecting the shareholders' pivotal role in corporate governance.
Step-by-step explanation:
To make fundamental investment policy changes, an investment company's Board of Directors (BOD) must typically obtain shareholder approval. The shareholders of a public company, being a very diverse and large group of financial investors, have the responsibility of electing the board of directors. These directors are then charged with the governance and oversight of the company's operations. Shareholders' influence is proportional to the amount of stock they own. In cases like that of Lehman Brothers, corporate governance can fail, highlighting the importance of shareholder oversight in financial operations.