Legal Definitions - classified board of directors

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.