Definition of Board Of Directors

Board of directors is a group of executive and non-executive directors that are appointed by the shareholders to run the affairs of the company. The public listed companies are required to have a board of directors and also private companies can have a board of directors.

Since the board members can range from at least three to thirty-one, it is often a group of people that shareholders have chosen as their representatives. Some of them are executive directors who have fiduciary duties to administer and operate the assets of the company in shareholders’ best interest. Others are non-executive directors who have responsibilities to ensure good governance practices.