Board of Directors
A group of individuals elected to represent shareholders and provide oversight and strategic guidance to company management.
Definition
The Board of Directors is the governing body of a corporation, responsible for making major corporate decisions, setting strategic direction, and overseeing management performance. Board members have fiduciary duties to act in the best interests of shareholders and the company.
Key Responsibilities
- • Hire, evaluate, and terminate the CEO
- • Set strategic direction and major policies
- • Approve major decisions (acquisitions, financing)
- • Ensure compliance and risk management
- • Review and approve annual budgets
- • Authorize major contracts and expenditures
- • Protect shareholder interests
Startup Board Composition
Typical Early-Stage Board: 3-5 members including founder CEO, 1-2 investor representatives, and independent directors
As companies grow, boards expand to include more independent directors, industry experts, and diverse perspectives.