Classified Board

Also known as Staggered Board: is one in which the directors are placed into different classes and serve overlapping terms. Since only part of the board can be replaced each year, an outsider who gains control of a corporation may have to wait a few years before being able to gain control of the board. This slow replacement makes a classified board an effective delays of takeovers. Sometimes known as a delay provision.

Classified Board

A board of directors where members start their terms at different times and only a certain number are elected in a given year. For example, a board of directors may have 10 members serving five-year, staggered terms where two new members are elected each year. In addition to giving the board consistency in its membership, a classified board makes hostile takeovers more difficult because the potential acquirer can replace only so many directors at a time.

classified board

A corporate board of directors whose members are elected to terms that expire in different years. A classified board makes it more difficult for a new owner to assume control in a takeover. See also staggered terms.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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References in periodicals archive ?

Cloudera, which has a classified Board, will appoint Messrs.

Cloudera and Carl C. Icahn Announce Agreement

The staggered board, sometimes called a classified board, is a

SETTLING THE STAGGERED BOARD DEBATE

Prasad will be a Class III director on Townsquare's classified Board and will be up for re-election at the company's 2020 annualshareholders' meeting.

Townsquare's co-CEOs Added To The Board

Ln (Premium) = [a.sub.0] + [b.sub.1] Board Size + [b.sub.2] Board Independence + [b.sub.3] CEO - COB Duality [b.sub.4] + Classified Board + [b.sub.5] Blocks(%) + [b.sub.6] D&O Own + [b.sub.7] Dual Class + [b.sub.8] CEO Total Compensation + [b.sub.9] CEO Incentives + [b.sub.10'] Severance + [b.sub.11] Employment Arrangement + [b.sub.12] Size + [b.sub.13] Tobin's Q + [b.sub.14] Free Cash Flow + [b.sub.15] Debt/Equity + [b.sub.16] Return on Assets + [b.sub.17] Prior Litigation + [b.sub.18] US Listing + [b.sub.19] Year 2000 + [b.sub.20] Year 2005 + [b.sub.21] Abnormal Coverage + e.

On lawsuits, corporate governance, and directors' and officers' liability insurance

Finally, we examine one of the most powerful takeover deterrents, the combination of a classified board and a poison pill.

Tradeoffs between internal and external governance: evidence from exogenous regulatory shocks

Classified board membership is built on staggered terms, which often can be used as a defensive measure to hold off a potential hostile takeover.

Record-high votes for board declassification

The stockholder meeting has approved management's proposals relating to corporate governance matters, including the removal of the company's classified board of directors, reduction of the vote requirements for certain actions needing stockholder approval, and annulment of the limitation on stockholders' ability to vote shares in excess of specified ownership thresholds, it said.

-Pacific Premier Bancorp receives shareholder approval for proposals

Boards classified as W/D Class 3 were excluded from this figure, making the number of classified board surfaces in Series A, B, and C for spruce 20, 46, and 46, and for pine 18, 34, and 16, respectively.

Mold growth on sapwood boards exposed outdoors: the impact of wood drying

The strategy was based on the presence of "entrenching" governance provisions, such as a classified board or a poison pill, which insulate managements from the discipline of the market for corporate control.

Pricing corporate governance

the classified board, the poison pill, the plurality vote, and so on and

Toward common sense and common ground? Reflections on the shared interests of managers and labor in a more rational system of corporate governance

Advertisers that submit a listing to any edgeio Classified Board also may create, schedule, and pay for an ad listing for publication in print and/or online versions of participating geographically relevant newspapers.

Edgeio Classified Boards to Utilize AdStar Technology

Also at the meeting stockholders approved the declassification of the company's board and elimination of the supermajority vote requirement for reinstating a classified board.