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How Many Directors Should My New Corporation Have?

A director (or member of the Board of Directors) is the name given to a corporate position which manages the officers of the corporation. The officers of the corporation are the CEO, CFO, Treasurer, Secretary, COO, CIO, etc.   Officers are overseen by the directors.  Directors are elected by the shareholders/owners of the corporation.  The shareholders/owners of the corporation do not directly appoint or elect the officers – that is done by the directors.  The directors can hire and fire the officers of the corporation generally at their discretion. So, the choice of how many directors your corporation has and who they are is very important, because the officers report to the board of directors.

At least one director is required. You can have as many directors as you want, but keep in mind that directors are the “management” of the entity. Having too many can make it difficut to manage the corporation because of disagreements, or because of quorum requirements (more than ½ of the directors in office need to be present at meetings in order to constitute a quorum).

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