# Board Seat

*Startups & Venture Capital — Finicade finance glossary*

A board seat gives an investor formal governance rights — hiring and firing the CEO, approving budgets, approving a sale. Board composition matters more than ownership percentage for control: a founder holding 60% of shares can still be removed by a board they don't control. Observer seats give information rights without a vote, and are the common compromise for smaller investors.

**Also known as:** board of directors, board control, observer seat

**Related terms:** [Corporate Governance](https://finicade.com/glossary/corporate-governance), [Series A](https://finicade.com/glossary/series-a), [Venture Capital](https://finicade.com/glossary/venture-capital), [Founder Vesting](https://finicade.com/glossary/founder-vesting), [Exit](https://finicade.com/glossary/exit)

Source: https://finicade.com/glossary/board-seat