Hire an M&A Professional to Sell Your Business

Classified Boards

Definition - What does Classified Boards mean?

Classified boards is a type of organizational structure for a firm's board of directors. Classified boards stagger the term lengths served by different board members, often based on seniority.

Divestopedia explains Classified Boards

In a classified boards system, a board member's classification depends on their length of service. This type of system has proven to be an effective way to stave off acquisition attempts. With this system, board members serve overlapping terms and all of the members cannot be replaced at the same time. Therefore, if the firm was to experience a hostile takeover, the takeover firm would be unable to replace all board members immediately.

Connect with us

Divestopedia on Linkedin
Divestopedia on Linkedin
"Divestopedia" on Twitter

Sign up for Divestopedia's Free Newsletter!

Email Newsletter

Join thousands of others with our weekly newsletter


  • Equicapita: Equicapita
    Equicapita's model is to acquire established, private small and medium sized enterprises (“SMEs”) located primarily in Western Canada.
  • Evolution Capital: Evolution Capital
    Leaders in growing small business.