Preferred director
In accounting, preferred director means a director the preferred stockholders elect as a separate class, under the charter. The NVCA model splits the board into seats the preferred elect, seats the common elect and at-large seats everyone elects together — so a board seat is a class vote written into the certificate, not a courtesy.
Also called Board seat.
Authority: NVCA model certificate of incorporation §3.2 (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- observer (attends, does not vote)
- advisor
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
13Metrics & analysis
Family specAlso in Equity & financing
Defined in Lexicon. This page is generated from that document, so the two can't disagree.