outside director

(redirected from Independent director)
Also found in: Dictionary, Medical.

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 ?
"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.
Berkley Corp., said it has launched a new director liability insurance policy that provides individual protection to independent directors.
But yesterday the independent directors insisted that Mr Burnett's new indicative price of 130p "undervalues the company".
The time commitment for attending meetings varies from annually to monthly, and you can expect other independent directors to be bright, friendly and intelligent.
Waldman in this role will coordinate the activities of the independent directors and serve as a liaison between the president and chief executive officer the other independent directors.
"The board of directors will commence the search for the new independent director to serve for the unexpired term of SyCip," MPIC added.
Tata Motors (NYSE: TTM), an India-based automaker, has named Om Prakash Bhatt as its additional and independent director with effect from May 9, 2017, for a period of five years.
(NYSE: AHT) has appointed Fred Kleisner as a new independent director, bringing the total number of directors to seven and the total independent directors to six, the company said.
TapImmune Inc (OTCMKTS: TPIV), a clinical-stage immunology-oncology company specialising in the development of innovative peptide and gene-based immunotherapeutics and vaccines for the treatment of cancer & metastatic disease, has named Frederick G Wasserman as its independent director.
Obviously, when these roles are separated, one of the board members now becomes board chair and is apparently not replaced by an additional independent director. We know this because of the stability in the number of independent directors and overall board size.
Sebi also proposed that while resigning, an independent director should disclose the reasons for his/her decision.
Muscat: Recent move of the Capital Market Authority (CMA) to amend the definition of the independent director and related parties in the Code of Corporate Governance aims to upgrade the standards of corporate governance principles to enhance investor confidence on the Muscat Securities Market (MSM) and to protect the rights and interests of shareholders, a statement issued by the Director of Compliance and Disclosure of CMA said.

Full browser ?