board of directors


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Board of Directors

Individuals elected by the shareholders of a corporation who carry out certain tasks established in the charter.

Board of Directors

A body elected to govern a corporation on behalf of shareholders. Generally chosen to represent both management and shareholder interests, it establishes general policies for the organization, including dividend policies, and hires/fires major executives. It is answerable to shareholders for its decisions. A publicly traded company must have a board of directors.

board of directors

The group of people responsible for supervising the affairs of a corporation. The board of directors generally sets broad corporate policy rather than participating in day-to-day managerial decisions, although selection of the chief executive officer is the board's responsibility. Members are elected by the firm's stockholders and may or may not be stockholders themselves. See also chairman, classified board, inside director, interlocking directorates, outside director, staggered terms.

board of directors

the group responsible to the SHAREHOLDERS for running a JOINT-STOCK COMPANY. Often boards of directors are composed of full-time, salaried company executives (the executive directors) and part-time, nonexecutive directors. The board of directors meets periodically under the company chairman to decide on major policy matters within the company and the appointment of key managers. DIRECTORS are elected annually at the company ANNUAL GENERAL MEETING.

In recent years the responsibilities of British directors have been increased under the terms of the Insolvency Act and they may be held personally liable for company debts incurred if they knowingly and recklessly trade after the company is insolvent (see INSOLVENCY).

In certain European countries, like Germany, there are two-tier boards of directors with a supervisory board composed of representatives of shareholders, employees, etc., which appoints a management board to deal with the detailed management of the company. See CORPORATE GOVERNANCE.

board of directors

the group responsible to the SHAREHOLDERS for running a JOINT-STOCK COMPANY. Often, boards of directors are made up of full-time salaried company executives (the executive directors) and part-time, nonexecutive directors. The board of directors meets periodically under the company chairman to decide on major policy matters within the company and the appointment of key managers. Directors are elected by rotation at the company ANNUAL GENERAL MEETING. See TWO-TIER BOARD, CORPORATE GOVERNANCE.

board of directors

The governing body of an organization,charged with establishing policy and with taking steps to see that the policies are implemented.Except in small corporations or associations, the board typically does not involve itself in day-to-day business activities, those being more properly the role of the president.Many corporations have executive boards with true legal responsibilities,and advisory boards of largely ceremonial function designed to reward contributors,create strategic alliances,or gain expert insights into limited areas on an as-needed basis.

• In the real estate context, a director who acts as a broker in real estate transactions involv- ing corporate property cannot accept a commission unless the board specifically authorizes it, even if the president previously granted the approval and would otherwise have had such authority to hire a third party.

• Lenders have legal limitations on the sizes of loans they can extend to their own directors. Large developers should consider this before accepting board positions.

• The board of directors in a cooperative apartment enjoys tremendous power in the approval of new members and in decisions to evict current members.

• The board of directors of a condominium association is charged with making sure the community always has adequate insurance. Because of the shared nature of ownership in the common areas, inadequate insurance could result in the imposition of liability on individual unit owners for an accident in a common area. Failure to maintain the proper level of insurance could subject board members to liability.

References in periodicals archive ?
On August 15, 2006, Rambus announced the resignation of Geoff Tate, former Chief Executive Officer of Rambus from 1990 through 2005, from its Board of Directors.
Unfortunately, instead of allowing EPL stockholders to have a fair choice in the matter, the EPL Board of Directors has adopted a poison pill that effectively prevents EPL stockholders from realizing the benefits of the ATS offer.
42) Still, it was up to the Association's membership, "the principal stockholders," to decide who would represent them on the National Board of Directors.
Current: CalCPA Board of Directors, vice chair; CalCPA Council; Central Coast Chapter Communications Advisory Committee; Central Coast Chapter Membership/Hospitality Committee, chair; CalCPA Financial Literacy Committee; CalCPA Communications Advisory Committee, board liaison.
And the rank and file physician shareholders want the physician officers and physician board of directors to pay the legal fees and fines out of their own pocket.
Territory affiliation is automatic unless the affiliate has formally notified file Board of Directors that it wishes to discontinue affiliation.
Justice Silverman went on to state that in the event either of these two issues are answered in the negative, the board of directors of the cooperative may be considered to have acted outside the scope of its authority.
The Councils serve as advisory groups to the Board of Directors.
Bower, founder of PCG and the fourth member of PCG AM's Board of Directors said: "The formation of PCG AM as a separate and independent legal entity creates a focused, client-centric private equity fund investment advisory and consulting firm.
Current: CalCPA Board of Directors, vice chair; CalCPA Council; CalCPA Finance Committee; CalCPA Audit Committee; San Francisco Chapter Board of Directors; San Francisco Chapter Careers in Accounting Committee, chair; CalCPA Technology Committee; CalCPA Management Consulting Services Committee; AICPA Tax Section.
On February 18, 2007, the Special Committee also recommended unanimously to the Board of Directors that a letter received by NHHC from Scott-Macon Ltd.
Members of the Board of Directors elected from and by the CalCPA Council for 2004-06:

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