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Simple English definitions for legal terms
inside director
Read a random definition: Dodd-Frank: Title XVI - Section 1256 Contracts
A quick definition of inside director:
Inside Director: An inside director is a person who works for a company and also serves on its board of directors. They have a say in making important decisions about the company's future and are responsible for overseeing its management. Inside directors may also be major shareholders in the company.
A more thorough explanation:
An inside director is a member of a corporation's board of directors who is also an employee, officer, or major shareholder of the corporation.
For example, the CEO of a company who also sits on the board of directors would be considered an inside director. Another example would be a major shareholder who is also a member of the board.
Inside directors have a unique perspective on the company's operations and can provide valuable insight to the board. However, they may also face conflicts of interest and must be careful to act in the best interest of the company and its shareholders.