Jack can best be described as an outside director. Jack is a board member of firm a but is not an employee of firm.
Corresponds to a professional who performs the role of a member of the board of directors, but who is not an employee or shareholder of the organization. Hiring external directors is a legal requirement for public organizations.
It is a legal rule that public companies have an external director, in order to reduce unilateral decision-making and fraud, since, as they are not an employee of the organization, the external director is more likely to make impartial decisions.
Therefore, in addition to impartiality, the external director can assist the organization with a different vision and experience, in order to contribute to the organizational positioning and strategy.
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