A more thorough explanation:

In a corporation, a director is a person appointed or elected by the shareholders to sit on the board of directors. The board of directors is responsible for making important decisions about the company, such as setting goals, making policies, and overseeing the work of the company's executives.

There are two types of directors:

• Executive Directors: These directors are responsible for the day-to-day management of the company. They make decisions about the company's operations, finances, and employees.
• Non-Executive Directors: These directors are not company employees. They don't engage in the day-to-day management of the organization. Their responsibilities are monitoring executive directors and acting in the best interests of the company's stakeholders.

Directors act as agents and trustees for the corporation, and have the duty to act with care, loyalty, and goodwill in all acts done on behalf of the corporation. This means that directors must make decisions that are in the best interests of the company and its shareholders, and not for their own personal gain.

For example, if a company is considering a merger with another company, the board of directors would be responsible for making the final decision. The executive directors would provide information about the financial and operational aspects of the merger, while the non-executive directors would provide oversight and ensure that the decision is in the best interests of the company and its shareholders.