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In-Depth Incorporation FAQ

What is a Board of Directors?

The decision-making authority of a corporation is centralized in a Board of Directors. The Board of Directors delegates this authority to the company's officers, but maintains the power to oversee the operation of the business. Each director is usually appointed for an annual term by a Shareholder vote, and may be re-appointed thereafter.

There is no requirement that directors, shareholders and officers be different people. In small corporations, the directors are usually shareholders or officers as well.