What is the Board of Directors & Company Officers – Defined

Any company would likely have both a board of directors and corporate officers.  Sometimes, a company, such as a small. privately held company, may have one individual holding all of the various positions.  But, in the case of larger and larger companies, these roles are spread out over many individuals.  The Board of Directors would oversee the company’s officers and key functions of a company.  The company officers would oversee the day-to-day operations of a company.

What is the Board of Directors?

A board of directors is one or more individuals that oversees the general functions of the company.  There is usually a Chairman of the Board of Directors, perhaps a Vice Chairman of the Board of Directors, and individual Board Members.  Each individual may bring a certain amount of expertise to the overall company.  Some board of directors may be on multiple boards of multiple companies.  And, this would give the ability for some individuals to connect companies and individuals within companies to one another.  This allows for strategic partnerships and opportunities for a company.

The Chairman of the Board would, ostensibly, run the board meetings and direct the board during these meetings.

The officers of the company would report the activity of the company to the Board of Directors on a periodic basis, usually at least once a year.

Shareholders may be the ones who vote on who can be appointed to the board of directors.  Each shareholder could have a vote based upon their share count, should the shares have voting rights. Since the shareholders are the ultimate owners of the company, the Board of Directors answers to these owners.  The actions of the board would shift and direct the company in one direction or another.

What are the Company Officers?

The company officers are hired by the Board of Directors to run the day-to-day operations of the company.  The company may have a President and Vice President, and/or the company may have a Chief Executive Officer, or, CEO. These roles are defined by the Board and filled by the Board of Directors.  The position of President & CEO may be the held by the same individual or different individuals.  The roles may be the same or different depending upon what the Board of Directors has directed.

Officers of the Company

An officer of the company is an individual hired by the Board of Directors and is usually the CEO, CFO, CIO and any other chief individuals in the company.

The officers of a company are an important part of a company.  Should you want to learn more about company officers and how they may drive a company, make certain to see how this all breaks down within the FREE video series I have on Stock Market For Beginners – How to Invest in Stocks.  This is all part of understanding Value Investing Principles and the Value Investing Video Course is an excellent starting point.

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