What does the internal director do?

Inside Director is a member of the Board of Directors, which is also a member of the company management or the main shareholder in the company. This level of interest in the company's operating matters can create a conflict of interest and, as a result, the internal directors are related to very high standards of care. Other members of the Board of Directors, as well as shareholders and regulators, can carefully monitor the internal director to confirm that they are not against the interests of the company. As a member of the management, the CEO must take decisions that will benefit the company and are involved in the daily management of the company. However, as a member of the Board of Directors, the Internal Director is obliged to seek the interests of shareholders in decision -making, which will increase profits. Often these two needs are joined by, so when companies are doing well, shareholders benefit. However, there may be situations where the management and board of directors get into conflict, which can put the director in an unpleasant position.

The main shareholders can also be inside the directors. In these cases, there may be a conflict of interest, as the main shareholder is obviously interested in maintaining these shares of valuable. Finding your own interests will usually benefit from other shareholders. Sometimes, however, the main shareholder can be involved in the decision of the board, which could hurt some shareholders and benefit others.

The Inner Director is responsible for shaping the company direction and at the same time representing the interests of people holding shares in the company. As a member of the Board of Directors, the Inner Director meets when the Board of Directors is convened and is involved in the proposals and voting on Concern matters on the board.

contrasts with an external director. The external directors are people who are selected from the external community to serve on the board. They are not members of the management, so they do not experience clashes of the interests of this quarter when they can decide. In addition, they are not the main andCCDERS, so there is no risk of conflict of interest. External directors are associated with the company only through the Board of Directors, have only duties with the Council and are compensated on the basis of their performance as members of the Board of Directors.