What is a legal right that a director of a corporation does NOT possess?

The correct response identifies a legal right that a corporation’s director does not possess: the right to change the corporate charter. This choice reflects the structure of corporate governance and the limitations placed upon directors in relation to the powers of shareholders.

In corporate law, the corporate charter, also known as the articles of incorporation, is a foundational document that governs the establishment and operation of the corporation. Changes to the corporate charter are significant and typically require approval from the shareholders, often through a voting process. This ensures that the ultimate authority concerning fundamental changes lies with the owners of the corporation, rather than with the directors, who are tasked with day-to-day management and decision-making within the framework established by the charter.

On the other hand, directors do have the legal rights to inspect corporate books and records, vote on dividend payments, and authorize major corporate policies. These responsibilities and rights are essential in allowing directors to effectively manage the corporation and meet their fiduciary duties to act in the best interests of the shareholders. Therefore, the right to change the corporate charter stands apart as it is reserved for the shareholders.