• Entry
  • Reader's guide
  • Entries A-Z
  • Subject index

Corporate directors are the elected representatives of shareholders, put in place to safeguard the interests of the investors who bear the residual financial risk of their firms. They make up one third of the corporate governance triumvirate of executives, investors, and directors. Corporate governance examines the roles of each of these groups, along with their interrelationships and their balance of power. Through most of the 20th century, directors in the United States held significantly more power than did diffused shareholders, although much less than the corporations' CEOs.

Director Responsibilities

In the United States, corporate law dictates that directors must monitor the leadership of the firm to ensure that the corporation is run in the long-term interest of shareholders. They owe investors both the duty of care, ...

    • Loading...
    locked icon

    Sign in to access this content

    Get a 30 day FREE TRIAL

    • Watch videos from a variety of sources bringing classroom topics to life
    • Read modern, diverse business cases
    • Explore hundreds of books and reference titles