Board of directors,
Definition of Board of directors:
Governing body (called the board) of an incorporated firm. Its members (directors) are elected normally by the subscribers (stockholders) of the firm (generally at an annual general meeting or AGM) to govern the firm and look after the subscribers interests. The board has the ultimate decision-making authority and, in general, is empowered to (1) set the companys policy, objectives, and overall direction, (2) adopt bylaws, (3) name members of the advisory, executive, finance, and other committees, (4) hire, monitor, evaluate, and fire the managing director and senior executives, (5) determine and pay the dividend, and (6) issue additional shares. Though all its members might not be engaged in the companys day-to-day operations, the entire board is held liable (under the doctrine of collective responsibility) for the consequences of the firms policies, actions, and failures to act. Members of the board usually include senior-most executives (called inside directors or executive directors) as well as experts or respected persons chosen from the wider community (called outside directors or non-executive directors). See also corporate governance.
How to use Board of directors in a sentence?
- Tomorrow, I would have to go in front of the board of directors and tell them why I was not moving forward in the company.
- The board of directors requested that our middle management coordinate a presentation of our new marketing strategy to increase next quarters profit.
- Being able to keep the board of directors happy goes a long way to having a long career in any organization.
Meaning of Board of directors & Board of directors Definition