Legal Glossary

Board of Directors

The body responsible for the management and oversight of a company. Shareholders appoint Directors to the Board of Directors. The Board of Directors owe Fiduciary Duties to the Company to ensure that it functions effectively and avoids the need for Shareholders to involve themselves in the day-to-day management of a business. The Board of Directors should meet regularly to ensure they are fulfilling this duty.

Bridge finance

Short-term temporary finance used to bridge the gap until the company can raise money through other sources (e.g. share issue or private equity investment).

Business Plan

A written plan looking forward and describing the Company’s future: its goals and how it will achieve them. It may cover the next six months or up to three years, depending on how fast the Company is growing and changing. A Business Plan usually includes a business model, financial projections and assumptions and information about the target market for the Company’s products and services.