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It is well known that stockholders have a right to vote on who will be the board of directors of a company whose stock they own.

But, is it possible in principle, i.e., legal, for stockholders to decide that they don't want any upper management and choose instead to allow workers the right to manage the company themselves (something like workers' self-management but in capitalism)?
For instance, they maybe be motivated by the potential for higher dividends (instead of the profits going towards the managements' salaries).

EDIT: Related question. Is it possible for the board of directors to choose to do so?

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Under Sarbanes–Oxley, no. There are specific responsibilities vested in the board members. Without a CEO and a CFO, the quarterly financial reports cannot be signed off.

Many countries have similar responsibilities for board members, and by the same reasoning therefore a need for board members.

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  • Thanks. +1 I've accepted your answer. So a CEO and CFO are the minimum. A follow up question. Is it maybe possible to circumvent this law by making an existing employee an "honorary" CEO and CFO? – Bubble Jun 10 '14 at 19:23
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    Honorary or not, they'd be criminally responsible for anything they should but didn't do. And that doesn't shield the people who are effectively in charge, as SOX isn't limited to 2 persons. – MSalters Jun 10 '14 at 19:38

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