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 classic literature ?
I had the biggest magazine of all kinds now that ever was laid up, I believe, for one man: but I was not satisfied still, for while the ship sat upright in that posture, I thought I ought to get everything out of her that I could; so every day at low water I went on board, and brought away something or other; but particularly the third time I went I brought away as much of the rigging as I could, as also all the small ropes and rope-twine I could get, with a piece of spare canvas, which was to mend the sails upon occasion, and the barrel of wet gunpowder.
After this, I went every day on board, and brought away what I could get.
The mate told him that the captain would be on board in the afternoon, and that he would leave all that till he came.
These she put on board in her own name, took his bills of loading for them, and endorsed those bills of loading to my husband, insuring the cargo afterwards in her own name, by our order; so that we were provided for all events, and for all disasters.
He little thought, as he lay sleeping in happy unconsciousness of all around him, that the board had that very day arrived at a decision which would exercise the most material influence over all his future fortunes.
The members of this board were very sage, deep, philosophical men; and when they came to turn their attention to the workhouse, they found out at once, what ordinary folks would nver have discovered--the poor people liked it
When those on shore saw the ship actually under way, they embarked with all speed, but had a hard pull of eight miles before they got on board, and then experienced but a grim reception, notwithstanding that they came well laden with the spoils of the chase.
When you come to a frigate, of course, you are more confined; though any reasonable woman may be perfectly happy in one of them; and I can safely say, that the happiest part of my life has been spent on board a ship.
This was a heavy piece of news to my nephew, but there was no way to help it but to comply; so, in short, he went on board the ship again, and satisfied the men that his uncle had yielded to their importunity, and had sent for his goods from on board the ship; so that the matter was over in a few hours, the men returned to their duty, and I began to consider what course I should steer.
Anthony would have been glad anyhow to have another woman on board.
As soon as he returned from the shore on board his ship he commenced operations by taking off his coat; then he put on his head an embroidered round cap with a tassel, and changed his boots for a pair of cloth slippers.
It came at length, however, and I immediately went on board.