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Board Of Directors

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Board of directors refers to a group of people that are elected by shareholders of a company who make decisions affecting the company's business on behalf of the shareholders. The board of directors meets regularly to discuss governance issues, compensation packages and general business activities. The board of directors can make decisions that directly affect a stockholder, such as when or if to pay out a dividend. The board of directors carries out these tasks according to the company charter. The board of directors can also hold emergency meeting sessions and vote on an issue that may need immediate attention. Every publicly-traded company must have a board of directors. Shareholders usually vote for their board of directors through a proxy statement that is sent to them in the mail each year. The shareholder can also attend this annual board of directors meeting usually held at the company's headquarters to vote in person.

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