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 ?
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.
Daniel Bernard, Lead Independent Director since 2014 and, as such, Chairman of the Ethics & Governance Committee pursuant to the Board of Directors' Charter, decided to resign his position as Lead Independent Director and accordingly Chairman of the Ethics & Governance Committee in anticipation of the upcoming Combined Shareholders' Meeting of May 10, 2017.
In the same circular, the term of an independent director was expanded to five consecutive years.
According to Hamilton Bancorp, the lead independent director will, among other responsibilities, facilitate discussions with and coordinate the activities of the company's other independent directors, including having the authority to call executive sessions of the independent directors and set the agenda for and lead executive sessions of the independent directors.
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.
In an advisory dated March 31, 2016, the Securities and Exchange Commission (SEC) limited the term of independent directors to a maximum of nine years.
Sebi also proposed that while resigning, an independent director should disclose the reasons for his/her decision.
Also, Scott Sandell, an outside and independent director, has been appointed as lead director of the board.
Army general can possibly put in the 100 hours plus per month that many lawyers and CPAs believe is required for an independent director to meet the minimum requirements of the law for five board positions.

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