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 updated in September of 2022 by the Wex Definitions Team]