# Preferred director

> Preferred director — 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.

Source: https://lopifi.com/glossary/preferred-director
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 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 known as

- Board seat

## Words this system refuses for it

- observer (attends, does not vote)
- advisor

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)