Final answer:
The Board of Directors can delegate fiduciary responsibilities to a variety of entities, ensuring shareholder interests are the priority, even though they may be influenced by top executives.
Step-by-step explanation:
The Board of Directors, in carrying out its responsibilities for the administration of fiduciary powers, may assign such functions as it deems appropriate to committees, individuals, agents outside the bank, individual members of the board. This delegation of authority is part of ensuring that the firm operates in the best interests of its true owners—the shareholders. Typically, the board of directors is elected by shareholders, forming the cornerstone of corporate governance. While the top executives often influence the selection of board members, shareholders also play a vital role in corporate oversight. Institutions such as auditing firms and outside investors also contribute to corporate governance, although, as seen in cases like Lehman Brothers, the system is not infallible.