outside director investment & finance definition
A
director on a company’s board who isn’t employed by the corporation. With the
passage of the Sarbanes-Oxley legislation in 2002, a greater emphasis has been
placed on having outside directors on a company’s board of directors. It is
illegal for outside directors to sit on the boards of competing companies.
See outside director in Wall Street Words
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.
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