Board Of Directors Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Board Of Directors, written in plain English, along with examples of how it is used.
What is Board Of Directors?
(n) Board of Directors is the persons selected by the shareholder of a body corporate to run the business of the company on behalf of them as per the memorandum and article of the company. Board of Directors is the executive authority of a corporation.
History and Meaning of Board Of Directors
The Board of Directors is a group of individuals who are elected by shareholders to oversee and make decisions about the management and direction of a corporation. The Board is responsible for setting strategic goals, appointing executives, and making major corporate decisions. The Board is also responsible for ensuring that the corporation follows all laws and regulations, and that it is acting in the best interests of its shareholders.
Examples of Board Of Directors
- The Board of Directors met yesterday to discuss the company's financial performance and make decisions about the upcoming fiscal year.
- Shareholders will have the opportunity to vote for candidates running for the Board of Directors at the company's annual meeting next week.
- The Board of Directors voted to approve the merger with a rival corporation, which will double the size of the company.
Legal Terms Similar to Board Of Directors
- Shareholders: individuals or entities that own shares of a corporation and have a vested interest in its success.
- Officers: corporate employees appointed by the Board of Directors to manage day-to-day operations of the corporation.
- CEO: Chief Executive Officer, the highest-ranking officer of a corporation who is responsible for overseeing the entire organization.