A director on the board of directors is responsible for the overseeing the management of the company at a high level. Directors elect/appoint the officers, which are the CEO, CFO, CIO, CMO, COO, and other executives in charge of running the organization on a day-to-day level.   Directors on the board are elected by the shareholders/owners of the company. Directors also set executive compensation, approve dividends, and have the power to establish committees.   Directors also act as the stockholder’s representatives in establishing policies for corporate management and making other decisions on major company issues.

Directors generally do not earn a salary. Some companies compensate directors for their expenses or per meeting attended, and some companies have unpaid directorships.  Every corporation must have at least one (1) director.  In California, a corporation must have at least 3 directors, unless there are less than 3 shareholders.

[title size=2]Related Formation FAQs[/title]

• What is a Trust and Do You Need One?
• Who Makes End of Life Decisions When an  Accidental Tragedy Occurs?
• Axis Legal Counsel Hired in Trust Litigation Fraud and Breach of Fiduciary Duty Case involving Multiple Family Members
• California Will Requirements and Top Wills FAQs
• California 2022 Rest Break Laws | Los Angeles 2022 Rest Break Laws
• Could Your LLC Save on Taxes by Converting to an S Corp?
• Employer’s Guide to Responding to an Employee’s Unemployment Claim
• How to Deal with Overly Political Employees
• Can a Business Ban a Customer?
• Is an Officer of a Corporation An Employee?

[title size=2]Other FAQs[/title]

• Formation FAQs
• Stock Issuance FAQs
• Investment & Fundraising FAQs
• Intellectual Property FAQs
• Corporate Governance FAQs
• Employees & Labor FAQs
• Licensing & Permits FAQs
• Tax FAQs

Read All FAQs