board of directors business definition

The group of people responsible for supervising the affairs of a corporation. The board of directors generally sets broad corporate policy rather than participating in day-to-day managerial decisions, although selection of the chief executive officer is the board's responsibility. Members are elected by the firm's stockholders and may or may not be stockholders themselves. Also called directorate. See also chairman, classified board, inside director, interlocking directorates, outside director, overboarding, staggered terms.