Directorate

An organization headed by a director. In finance, directorate is sometimes used in place of "board of directors," which is the group of individuals that makes decisions for a corporation on behalf of its shareholders. In politics, directorates are government or quasi-government agencies or organizations (e.g., Norwegian Petroleum Directorate, OECD Trade and Agriculture Directorate, U.S. Directorate of Defense Trade Controls).

When an individual sits on the board of directors of more than one publicly traded corporation, this situation is called an interlocking directorate. Interlocking directorates are common, but can be problematic and even illegal if that individual belongs to the boards of competing companies. A board member is obliged to act in the best interests of the shareholders of any company he or she represents and must be careful to avoid conflicts of interest.


Investment dictionary. . 2012.

Look at other dictionaries:

  • directorate — di‧rec‧tor‧ate [dˈrektrt, daɪ ] noun [countable] ORGANIZATIONS the committee in charge of an organization, especially a government organization: • the Food Safety Directorate • The Bundesbank confirmed that it plans to reorganize its seven… …   Financial and business terms

  • directorate — di·rec·tor·ate /də rek tə rət, dī / n 1: a board of directors (as of a corporation) 2: membership on a board of directors Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Directorate — Di*rect o*rate, n. [Cf. F. directorat.] The office of director; also, a body of directors taken jointly. [1913 Webster] …   The Collaborative International Dictionary of English

  • directorate — 1837, from DIRECTOR (Cf. director) + ATE (Cf. ate) (1) …   Etymology dictionary

  • directorate — ► NOUN 1) the board of directors of a company. 2) a section of a government department in charge of a particular activity …   English terms dictionary

  • directorate — [di rek′tərit, dī rek′tərit] n. 1. the position of director 2. a board of directors …   English World dictionary

  • Directorate — A directorate is an agency usually headed by a director, often a subdivision of a major government department. Immigration and Nationality Directorate Dairat al Mukhabarat al Ammah (General Intelligence Directorate) Veterinary Medicines… …   Wikipedia

  • Directorate 14 — M14 s location in the Iraqi Intelligence Service organization Directorate 14, also referred to as the Directorate of Special Operations or M14,[1] was a branch of the Iraqi Intelligence Service under President Saddam Hussein. Headquarte …   Wikipedia

  • directorate — [[t]daɪre̱ktərət, dɪr [/t]] directorates 1) N COUNT A directorate is a board of directors in a company or organization. The European Central Bank would be managed by a directorate of around five professional bankers. 2) N COUNT: with supp A… …   English dictionary

  • directorate — UK [dɪˈrekt(ə)rət] / US / UK [daɪˈrekt(ə)rət] / US noun [countable] Word forms directorate : singular directorate plural directorates 1) the directors of a company 2) a part of a government department that deals with a particular area of activity …   English dictionary

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