What is a 'Board Of Directors'
A board of directors is an appointed or elected body or committee that has overall responsibility for the management of a nonprofit or nonstock organization, such as a foundation, university or mutual fund. The board of trustees holds "in-trust" the funds, assets or property that belong to others and has a fiduciary duty to protect them. Most importantly, the board of trustees oversees and advises management on issues facing the organization.
BREAKING DOWN 'Board Of Directors'
Mutual savings banks have boards of trustees who ensure that the interests of the depositors, borrowers, and members of the community in which they serve are considered and protected by bank management. The board has the duties of making sure customers' deposits are secured and invested safely, interest is paid to depositors, and that the customers' principal is available to them on request.