What does board of directors mean?

board of directors meaning in Legal Dictionary

letter. the policy managers of a corporation or company elected because of the investors or members. The board subsequently decides the officials associated with company, sets standard policy, and it is accountable toward shareholders. In tiny corporations you can find typically just three directors. In larger corporations board users offer illustrious brands, nevertheless the organization is frequently run by the officers and middle-management that have the expertise.

board of directors meaning in Finance Dictionary

The administrators tend to be a company's many senior managers as they are chosen to perform the business by investors. Administrators of public companies generally speaking need to be re-elected by shareholders every three years which can be typically simply a formality, but you can find periodic upsets.

board of directors meaning in Law Dictionary

The governing body of a private corporation, usually chosen from on the list of stockholders and constituting in place a committee of their quantity or board of trustees with regards to their interests.

board of directors meaning in Business Dictionary

Governing body (called the board) of an incorporated firm. Its people (administrators) are chosen typically because of the clients (stockholders) associated with company (typically at an annual general meeting or AGM) to control the company and look following the clients' interests. The board has got the ultimate decision-making authority and, generally, is empowered to (1) set their plan, targets, and total path, (2) adopt bylaws, (3) title members of the advisory, executive, finance, as well as other committees, (4) hire, monitor, evaluate, and fire the handling director and senior executives, (5) determine and spend the dividend, and (6) concern extra shares. Though all its users may not be involved with the business's day-to-day operations, the whole board is held liable (under the doctrine of collective obligation) for the effects associated with the company's guidelines, activities, and problems to do something. People in the board frequently feature senior-most professionals (known as 'inside directors' or 'executive administrators') plus specialists or respected persons opted for from broader neighborhood (called 'outside administrators' or 'non-executive administrators'). See also business governance.

board of directors meaning in General Dictionary

a group of people selected to control the matters of a corporation or other large organization

Sentence Examples with the word board of directors

The public school system is administered by a state superintendent of public instruction, a state board of education, regents or trustees of higher institutions of learning, a superintendent of the common schools and a board of education in each county, and a board of directors in each school district.

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