Final answer:
New members of a self-perpetuating board are selected by the existing members of the board, which often allows top executives to have significant influence in the board's composition.
Step-by-step explanation:
In a self-perpetuating board, new members are selected by C. The existing members of the board. This is a process where the current board members have significant influence in determining who gets nominated and selected to join them, thereby perpetuating the continuity and policies of the board without significant input from external parties like shareholders or the CEO. The concept behind a self-perpetuating board can often lead to a situation where the top executives have a strong voice in the board's composition, even though in theory, the board of directors should be working in the best interest of the shareholders.