Director definition
/What is a Director?
A director is a member of an entity's board of directors , who has responsibility for creating policy-level decisions, as well as the overall direction and allocation of funding within an organization. A director is typically approved for a one-year term in office by an entity's shareholders at the annual shareholders' meeting, though the duration of the term can vary. If the corporation is publicly held , the director may need to be independent of the organization, or at least if the person has a role on certain committees of the Board.
A director position can also be a title created within an organization to denote a certain level of responsibility, usually as a member of middle management. An area director is considered to be a more senior position, since it has a greater span of control. An executive director or managing director is considered part of the senior management group. A more specialized role is the finance director, which is roughly equivalent to a controller .
Does a Director Own a Company?
Directors may be encouraged to own shares in the business of which they are a part. Members of the board of directors may even be paid with shares in the company. However, there is no requirement that a director also be a company owner. They may prefer not to own any shares, in order to give the appearance of being independent of the business that they oversee.
