outside director

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Outside director

A director of a company who is not an employee of that company and brings in outside experience to help make board decisions.

Outside Director

A member of a publicly-traded company's board of directors that is not otherwise employed by or engaged with the company. That is, he/she does not represent shareholders or major executives in the company. Outside directors are thought to be advantageous because they offer objectivity and have little or no chance of conflict of interest. However, there is the possibility that an outside director might be unengaged with the issues involved in the company's governance. The Sarbanes-Oxley Act of 2002 mandates that a certain percentage of boards of directors be outside directors. It is illegal for outside directors to sit on multiple boards in the same industry as this may result in conflicts of interest.

outside director

A member of a firm's board of directors who is not employed in another capacity by that firm. An example is the president of one firm who serves as a director of another firm. Some people believe that at least some outside directors are needed to give a board balance and to protect stockholders' interests. Compare inside director.
References in periodicals archive ?
Further, for a further period of 5 years each, with Postal Ballot, members have also named exiting independent directors Shri S S Kohli and Shri K Ravikumar pursuant to Section 149 of the Companies Act, 2013.
We said independent directors should not be related to any member of the board or the company owners, but that's very difficult to achieve in a culture or country like ours where everybody is connected whether by second or third degree," Bu Saidi told Gulf News in an interview.
said it has launched a new director liability insurance policy that provides individual protection to independent directors.
Although IDL insurance offers some benefits to independent directors not afforded by other types of D & O policies, IDL has not sold well since it was introduced several years ago.
The time commitment for attending meetings varies from annually to monthly, and you can expect other independent directors to be bright, friendly and intelligent.
Another attorney suggests 250 hours per year as a reasonable estimate of the minimum time required for independent directors to do their jobs.
Independent Director Robert Kocharyan's shareholding in the Company has increased from 0.
In certain circumstances, we see the presence of these independent directors as transforming corporate boardrooms into a "war zone" of ideologies, even egos.
For mutual-fund independent directors, Kemper Vestis offers excess coverage with a separate limit of liability designated exclusively for claims against the independent directors.
But," FAST insisted, "the election of the first independent director will neither bring Food Lion into compliance with the NASD rule, nor result in `any meaningful stewardship function being provided by the board,' since Smith's removal requires approval of more than 80 percent of the directors, under the agreement.
An additional independent director will be elected by January 1993, MacMillan said.

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