Shareholders have voting rights to

Shareholders have voting rights to elect directors as their agents; however, individual directors have no direct responsibility or accountability to shareholders. Traditionally, public companies have used a plurality-vote system to elect corporate directors. Under a plurality-vote system, directors can be elected by the vote of a single share unless they are opposed by a dissident director. Conversely, a majority-vote system empowers shareholders to elect the most qualified outside directors. The nominating committee can play an important role in promoting majority voting and developing an efficient mechanism for shareholders to nominate or endorse director candidates. This may give shareholders more responsibility in selecting directors to the board, which may in turn alleviate the communication gap between the board of directors and shareholders.