Startup Dictionary
Board of Directors
Definition
A group of individuals elected to represent shareholders and oversee the management of a corporation.
Deep Dive
The Board of Directors is a governing body, comprising individuals elected by shareholders, whose primary responsibility is to oversee the management of a corporation and protect the interests of its shareholders. The board sets strategic direction, approves major corporate policies, and makes high-level decisions, including the appointment and compensation of the CEO and other top executives. They also play a crucial role in ensuring financial integrity, corporate governance, and risk management, providing a layer of oversight distinct from daily operational management.
Examples & Use Cases
- 1The Board of Directors of a publicly traded software company meets quarterly to review financial performance, approve the annual budget, and deliberate on potential mergers or acquisitions.
- 2A startup's Board of Directors, consisting of the CEO, lead investors, and an independent industry expert, convenes monthly to discuss product roadmap, fundraising progress, and key hiring decisions.
Related Terms
Fiduciary DutyShareholdersCorporate Governance