Final answer:
The board of directors does make policy decisions for a company, overseeing management to protect shareholders' interests but influenced by top executives in the selection process.
Step-by-step explanation:
Absolutely, the board of directors holds a crucial role in making policy decisions and overseeing the operation of a corporation. Elected by shareholders, the board acts as a representative body responsible for safeguarding the interests of the shareholders. In the context of a public company, where shares are sold to financial investors, the board's primary duty is to ensure that the company is managed in a manner that aligns with the shareholders' best interests.
While shareholders exercise their influence through voting for the board of directors, the selection of candidates is often influenced by top executives. This dynamic emphasizes the importance of transparency and accountability in corporate governance, as the effectiveness of the board in representing shareholders' interests can be influenced by the selection process and the board's ability to act independently in the best interests of the company and its shareholders.