outside director

(redirected from Independent Directors)
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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 ?
The current strength of independent directors at the PSX Board stands at 50 per cent.
In accordance with the SECP's direction, the newly elected shareholder directors along with the existing independent directors shall nominate new independent directors.
The National Prize "Director of the Year" was established in 2006 by the Association of Independent Directors and the Russian Union of Industrialists and Entrepreneurs in partnership with PWC.
This was mostly due to lower profitability in certain sectors and a correction after a surge in demand for independent directors as the new Companies Act came into effect, experts said.
Pierre Pringuet as Lead Independent Director and Mrs.
More importantly, the election of independent directors is part of the government's policy to promote corporate governance reforms to raise investors' confidence, develop the capital market and sustain high growth in the corporate sector and the economy.
Unlike the backing he got from independent directors of Indian Hotels Company ( IHCL) and Tata Chemicals, the words of `` unanimous backing to Cyrus Mistry's leadership'' during the crucial board meeting of Tata Motors were missing from the statement that the auto giant issued after the marathon meeting that lasted over five hours.
BANKING AND CREDIT NEWS-August 28, 2014--Coughlin as lead independent director at Hamilton Bancorp
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.
Republic Airways Holdings Inc's (NASDAQ:RJET) board of directors on Thursday announced it has appointed David N Siegel as lead independent director of the airline holding company's board.
Under the requirement of the FSC, 14 listed firms with paid-in capital reaching NT$50 billion and all financial institutions started to institute independent directors in 2007.
Unlike policies with limits shared across an entire board of directors, or a group of independent directors, this policy is written to cover a single director.

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