Board seat
Also called: board representation
In one line
A position on the company's board of directors, which oversees management and approves major actions including share transfers.
In plain English
The board runs high-level decisions. Investors and founders usually hold the seats; employees rarely do. The board's approval often gates your ability to sell shares.
If you were explaining it to a 5-year-old
A chair at the club's leadership table. The leaders decide big things — including whether you can sell your toys.
Why it matters when you sell
Because the board approves transfers, who sits on it (and their stance on secondaries) can affect whether your sale goes through.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
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.