Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025
Definition
A board of directors is a group of individuals elected to represent shareholders and oversee the activities and strategic direction of a corporation. This body makes key decisions on policy, strategy, and the overall governance of the corporation.
Related terms
Shareholder: An individual or entity that owns shares in a corporation, thereby owning a portion of the corporation and having an interest in its performance.
The system by which corporations are directed and controlled, involving the mechanisms through which companies, their managements, and all stakeholders are held accountable.
CEO (Chief Executive Officer): The highest-ranking executive in a company or organization, responsible for making major corporate decisions, managing the overall operations and resources, and acting as the main point of communication between the board of directors and corporate operations