What is the diffrence between members and directors? A board of directors is a group of people who jointly supervise the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organization, or a government agency. Other articles from investopedia. A board of directors consists of elected individuals who serve as advisors to a corporation and act as a proxy (representative or substitute) for shareholders.
Both for-profit and nonprofit corporations as well as some government agencies have a 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. In a broad sense, a corporate board of directors acts as a fiduciaryfor shareholders. When a company generates a profit and accumulates retained earnings, those earnings can be either reinvested in the business or paid out to shareholders as a dividend. Creating options policies 3. (more…)