Classified Board

Classified Board
A structure for a board of directors in which a portion of the directors serve for different term lengths, depending on their particular classification. Under a classified system, directors serve terms usually lasting between one and eight years; longer terms are often awarded to more senior board positions (i.e. chairman of the corporate governance committee).

Classified boards are often referred to as "staggered boards", although staggered boards and classified boards have somewhat different structures. Staggered boards need not be classified, but classified boards are inherently staggered.

The classified board structure features continuity of direction and preservation of skill, but has come under harsh criticism from shareholder advocacy groups for a number of reasons. Opponents to the classified structure argue that the system breeds board member complacency and forces directors to develop close relations with management.

Classified boards also serve as a powerful anti-takeover measure.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Classified Board — Also known as Staggered Board: is one in which the directors are placed into different classes and serve overlapping terms. Since only part of the board can be replaced each year, an outsider who gains control of a corporation may have to wait a… …   Financial and business terms

  • classified board of directors — USA staggered board of directors, Also known as a classified board of directors. A board which is comprised of directors that have different overlapping, multi year terms so that not all of the directors terms expire in the same year. A staggered …   Law dictionary

  • Classified information in the United States — For information on practices in other countries, see Classified information. The United States government classification system is currently established under Executive Order 13526, the latest in a long series of executive orders on the topic.[1] …   Wikipedia

  • Board of directors — For other uses of trustee , trusty , and related terms, see Trustee (disambiguation). Board Room redirects here. For the Board Room member lounge, see Alaska Airlines. trustee in trust redirects here. A board of directors is a body of elected or… …   Wikipedia

  • Board of governors — A board of governors is usually the governing board of a public entity.Many public services, such as universities or federal independent agencies are created as corporations owned by governnment. The British Broadcasting Corporation was managed… …   Wikipedia

  • Staggered board of directors — A staggered board of directors or classified board is a prominent practice in US corporate law governing the board of directors of a company, corporation, or other organization in which only a fraction (often one third) of the members of the… …   Wikipedia

  • staggered board of directors — USA staggered board of directors, Also known as a classified board of directors. A board which is comprised of directors that have different overlapping, multi year terms so that not all of the directors terms expire in the same year. A staggered …   Law dictionary

  • Staggered Board — A staggered board consists of a board of directors whose members are grouped into classes; for example, Class 1, Class 2, Class 3, etc. Each class represents a certain percentage of the total number of board positions. For example, a class is… …   Investment dictionary

  • British Board of Film Classification — Formation 1912 Type NGO Purpose/focus Film and video game classification …   Wikipedia

  • Australian Classification Board — Agency overview Formed 1970 Jurisdiction Commonwealth of Australia Minister responsible Robert McClelland, Attorney General Parent agency Attorney General s Department (current parent agency), OFLC (Original parent agency), Australian …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”