All Corporations are required to have a Board of Directors.
Directors are the people who will set policies for the Corporation and manage the business and its resources.
In the majority of small Corporations Directors are the owners.
The Articles of Incorporation or Corporate Bylaws may define specific qualifications for Directors.
The Board of Directors may consist of one or more persons.
The Board of Directors is responsible for creating rules, approving budgets and distributing profits to shareholders.
One of the most important duties of the Board of Directors is electing Officers for the Corporation.
The same person may be a Director and an Officer at the same time.
Directors need not be residents of the state in which the business is incorporated or shareholders of the Corporation unless the Articles of Incorporation or Bylaws require it.
Normally Directors of a Corporation are elected for a term of one year.
Elections are held at the annual meeting of Shareholders.
The Directors serve until the next annual Shareholders meeting.