Director Legal Meaning and Definition

Here is a simplified definition of the legal term Director.

Director (noun): A person elected by shareholders who serves on a corporation or association's governing body, known as the board of directors. While directors are responsible for establishing policies and strategic decisions, they do not oversee the day-to-day operations of the organization. This task is instead handled by officers and managers, who are hired by the board of directors. It isn't mandatory for a director to be a shareholder or an officer, though in some cases they can hold both roles. Most state laws mandate a minimum of three directors on corporate boards.