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Directors, Classified Boards of

A classified board of directors, which is currently the preferred organizational form of corporate governance for a majority of U.S. publicly traded companies, is a board that consists of different classes of directors. A classified board, in contrast to a unitary board, generally has three distinct classes of directors as opposed to one class. Each of these classes of directors serves for a different term length (term length being the only distinguishing feature between classes), usually lasting between 1 and 8 years. Classified boards are often referred to as “staggered boards” even though staggered boards and classified boards have different structures. Staggered boards are not necessarily classified, but classified boards are always staggered, which is to say that you can stagger the election of ...

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