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Board approval

Also called: board consent

In one line

The company board's required sign-off before certain actions — including, often, any transfer of your shares.

In plain English

Most private-share transfers need the board's blessing. The board can approve, decline, or exercise the company's rights (like ROFR) — a gate your secondary must pass.

If you were explaining it to a 5-year-old

Before you can sell your toy, the club's leaders have to say yes. They can agree, refuse, or buy it themselves.

Why it matters when you sell

Board approval is a key step that can delay or block a secondary, so factor it in early when planning a sale.

Related terms

Right of first refusal (ROFR)Transfer restrictionStockholder approvalBuyer of record

Put it to use

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.