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 ?

all members of the board of directors are required to adhere to principles of honesty and devotion by avoiding conflicts of interest and performing their responsibilities in accordance with the Companies Law, and the Company's articles of association and policies and procedures; and

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Kady Beaoui Pietz: Board of Directors, MS Gulf Coast Community College

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Newly created Directorships resulting from an increase in the authorized number of Directors and vacancies occurring in the Board of Directors for any cause, including any such vacancy occurring by reason of the removal of any director from office with or without cause, may be filled by the vote of a majority of the directors then in office, although less than a quorum, or by sole remaining Director.

Bylaws of Society of Rogerian Scholars, Inc

"By working daily, hand to hand with many students, and through the valuable experience gained while serving on the Board of Directors, I understand the needs of the teacher and the benefits MTNA provides:

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* An audit report that informs the board of directors and independent public accountants in the event that stock option grant dates are changed after the grant date, differ from the approved grant date or when grants are issued to Section 16 insiders;

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Eli Hurvitz, chairman of Protalix's Board of Directors said: "We are very pleased with Dr.

ORTHODONTIX/PROTALIX SIGN MERGER AGREEMENT

The CEO and board of directors, as well as representatives of the NAACP, were involved in the monitoring system.

The 40 best companies for diversity: our second annual listing reveals the top performers in supplier, workforce, management, and board diversity. A bonus: We identify the leaders in marketing spending to reach black consumers

At the Board of Directors meeting immediately following the annual meeting, Mr.

Dave Bernard becomes TEI's president

Fass takes the place of Ray Barrette, who has retired from his management positions within the company and also has left its board of directors. Barrette will remain to work with Fass and help to facilitate a smooth changeover.

White Mountains senior partner is new president and CEO

The Federal Reserve Board approved on September 20, 2005, an action by the Board of Directors of the Federal Reserve Bank of San Francisco, increasing the discount rate at the Bank from 4 1/2 percent to 4 3/4 percent.

Increase in discount rate

Farm Safety 4 Just Kids (FS4JK) announces the following elections made to the Board of Directors. For the past two years, Murray Madsen with the University of Iowa-College of Public Health has served as the chairman of the Board of Directors.