director

In a corporation , a director is a person, appointed or elected by the shareholders to sit on the board of directors . Directors have the authority to implement corporate policy , and act by voting to pass board resolutions. Directors act as agents and trustees for the corporation, and have the duty to act with care , loyalty , and goodwill in all acts done on behalf of the corporation.

A director can be an Executive Director or a non-executive director:

• Executive Directors are responsible for the day-to-day management of an organization or corporation.
• Non-executive directors are not company employees . They don't engage in the day-to-day management of the organization. Their responsibilities are monitoring executive directors and acting in the best interests of the company's stakeholders.

[Last reviewed in September of 2022 by the Wex Definitions Team ]

Keywords

• llcs-corporations-partnerships

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