director-level authority
Definition
Director-level authority refers to the decision-making power granted to someone who sits on a company's board of directors, allowing them to make major business decisions that bind the entire company. This type of authority goes beyond what a regular employee or even a manager can do, covering things like approving large contracts, taking on significant debt, or making strategic company-wide decisions.
Example
If your company's bylaws require director-level authority to sign any contract over $50,000, then your office manager cannot legally commit the company to a $75,000 equipment lease without board approval.
Watch Out
If someone acts as though they have director-level authority but actually lacks it, any contracts or agreements they sign could be challenged as invalid, leaving your business in a messy legal dispute.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.