A classified board is:
A)a communication network that identifies firms that are willing to be acquired
B)the inclusion a super majority provision to prevent a small number of directors from exerting total control over the board's decisions.
C)a board where only a portion of the directors are elected in any one year.
D)a communication network that distributes resumes for potential board candidates.
E)a listing of criteria that a firm is seeking for a targeted purchase.

Question

Quizplus · Accepted Answer

A classified board refers to a board where only a portion of the directors are elected in any one year. This is done to stagger the terms of the directors, ensuring that there is continuity on the board and preventing a complete turnover in any given year.

A Classified Board Is