Investor's wiki

Board of Trustees

Board of Trustees

What Is a Board of Trustees?

A board of trustees is a designated or chosen group of people that has overall responsibility for the management of an organization. The board of trustees is commonly the administering body of an organization and looks to guarantee the best interest of stakeholders in a wide range of management choices.

How a Board of Trustees Works

The board of trustees commonly incorporates key people associated with the management of an organization. Others might be designated or chosen in view of their aptitude and experience in areas relating to the management of the organization. The board will frequently have a mix of internal and outer trustees.

A board of trustees is like a board of directors and may act as such in certain organizations. A board of trustees is all the more usually found in private organizations. Substances with boards of trustees incorporate mutual savings banks, universities, university endowments, art galleries, and associations.

The phrase board of trustees can frequently be utilized reciprocally with the board of directors, the board of governors or board of officials. A few elements, for example, public corporations and mutual funds might have requirements designated by industry regulations that relate to the oversight and obligations of the board of trustees. At times, the board of trustees might be a special group entrusted with dealing with a designated portion of a far reaching organization.

The system for a board of trustees is normally set by regulatory obligations and entity heading framed in an organization's standing rules. A board of trustees can go from three to 30 people. Boards are frequently separated into sub-panels, which can assist with overseeing target areas of an entity while additionally accommodating some segregation of power.

Frequently the board of trustees will responsible for hold "in-trust" the funds, assets, or property that have a place with others with a fiduciary duty to safeguard them. Two leading substances utilizing a board of trustees structure incorporate university endowments and mutual savings banks.

University Endowments

A university endowment might have a special board of trustees that is responsible for the oversight and management of a portfolio of assets known as a endowment. The board of trustees has a fiduciary responsibility to deal with the funds to the greatest advantage of all partners. It might decide to invest the endowment assets across a scope of investments using the services of different institutional managers in dealing with the endowment assets. It might likewise decide to work with a single institutional manager in a separate account structure or assume the full duties of dealing with the actual assets. No matter what the structure of an endowment portfolio, the board of trustees has fiduciary responsibility for pursuing the endowment's all's investment choices.

Mutual Savings Banks

Mutual savings banks have boards of trustees who guarantee that the interests of the contributors, borrowers, and individuals from the community in which they serve are thought of and protected by bank management. The board has the duties of ensuring clients' deposits are secured and invested securely, interest is paid to contributors and that the clients' principal is accessible to them on request.


  • The board of trustees is responsible for dealing with an organization.
  • The board of trustees is like the board of directors, yet are generally in private organizations.
  • The trustees guarantee partners' best interests.