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Simple English definitions for legal terms
board of trustees
Read a random definition: Investor Protection Guide: Advance Fee Fraud
A quick definition of board of trustees:
A board of trustees, also known as a board of directors, is a group of people elected by shareholders or members to make important decisions for a corporation, partnership, association, or other organization. They establish policies, elect or appoint officers and committees, and make other governing decisions. In charitable organizations, they are often called board of trustees. Some boards have staggered terms, meaning only part of the board is voted on in any single election.
A more thorough explanation:
A board of trustees is a group of people who are elected to govern and make important decisions for a corporation, partnership, association, or other organization. They are chosen by the shareholders or members of the organization to establish policies, elect or appoint officers and committees, and make other governing decisions.
For example, in a charitable organization, the board of trustees is responsible for overseeing the organization's activities and ensuring that it is fulfilling its mission. They may also be responsible for fundraising, managing finances, and hiring staff.
Another example is a corporation, where the board of trustees is responsible for establishing corporate policy, appointing executive officers, and making major business and financial decisions. They are elected by the shareholders and are accountable to them.
Overall, the board of trustees plays a crucial role in the governance and success of an organization.