Glossary · Governance
Board of directors
The small group legally responsible for big company decisions: hiring/firing the CEO, major deals, and protecting shareholders. Early boards are often founders plus lead investors.
Related: Venture capital (VC) · Term sheet · Preferred stock · Board observer
A bit more nuance▾
- Boards are not day-to-day managers — they set oversight and strategy guardrails.
- Fiduciary duty means directors must serve the company, not just one investor.
Go deeper▾
Discussion questions▾
- Who would make your board smarter without slowing you down?
- What decisions should never be made without board awareness?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.