Final answer:
The by-laws of a corporation can allow majority shareholders to elect all members of the board of directors and exempt corporate officers from being stockholders.
Step-by-step explanation:
The subject of this question is Business.
The by-laws mentioned in S1 and S2 relate to the governance of a corporation. By-laws are rules and regulations that govern the internal operations of a corporation. S1 states that the holders of a majority of the outstanding capital stock can elect all members of the board of directors. This means that the majority shareholders have the power to choose the directors who will oversee the company's decisions and strategic direction. S2 states that the by-laws may also provide that no officer of the corporation is required to be a stockholder. This means that the by-laws can specify that corporate officers do not have to own shares in the company to hold their position.
Therefore, the correct answer is option A. Both are true.