Board of Directors

Board of Directors

The Board of Directors (pronunciation: /bɔːrd ɒv dɪˈrɛktəz/) is a group of individuals that are elected as, or elected to act as, representatives of the stockholders to establish corporate management related policies and to make decisions on major company issues.

Etymology

The term "Board of Directors" originates from the practice of having a group of people who direct or guide a company or organization. The word "board" comes from the Old English "bord", meaning a piece of sawn timber or plank. In a metaphorical sense, it refers to a table around which the directors sit to discuss matters. The term "director" comes from the Latin "directus", the past participle of "dirigere" which means to set straight or direct.

Related Terms

• Corporate Governance
• Executive Director
• Non-Executive Director
• Chairman
• Chief Executive Officer
• Shareholder

See Also

• Corporate Law
• Business Ethics
• Management

References

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