16:45
@bigfatsloth: an early welcome to north carolina :3 i will NOT be joining you in the forest unfortunately
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Simple English definitions for legal terms
classified board of directors
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A quick definition of classified board of directors:
A classified board of directors is a type of board of directors where the members are divided into different groups or classes. Each class serves for a specific term, and only a portion of the board is up for election each year. This is also known as a staggered board of directors.
A more thorough explanation:
Definition: A classified board of directors is a type of board of directors where the members are divided into different classes, and each class serves for a specific term. This means that not all members of the board are up for election at the same time. See staggered board of directors under BOARD OF DIRECTORS.
Example: A company has a classified board of directors with three classes. Class A has three members, Class B has four members, and Class C has five members. Each class serves for a term of three years. In the first year, only Class A members are up for election. In the second year, only Class B members are up for election. In the third year, only Class C members are up for election.
Explanation: This example illustrates how a classified board of directors works. The members are divided into different classes, and each class serves for a specific term. This ensures that not all members of the board are up for election at the same time, which can provide stability and continuity to the company's leadership.