Board of Directors
Financial Dictionary — Corporate Governance
Definition
The Board of Directors is individuals elected by a company's common shareholders to represent shareholders and set company policies. The board of directors appoints the company's officers and declares dividends on common and preferred stock.
Use cases, Example & Why it matters
Use cases
- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.
- Used when training staff or documenting procedures and policies.
Example
- Example: Teams reference **Board of Directors** when defining terms in manuals, policies, or training materials.
Why it matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.