What is the difference between an outside director and an independent director?

The difference between external directors and independent directors lies in:

1, the difference.

According to the dichotomy, directors are divided into internal directors and external directors, and external directors are independent directors at this time. According to the three-point method, directors are divided into internal directors, external directors with related relations and external directors without related relations.

2. Different in nature

Independent directors are independent of the company's shareholders and do not work in the company, and have no important business or professional contact with the company or the company manager. Non-executive directors, also known as external directors, refer to directors who have no other contractual relationship with the company except as directors.

3. Different characteristics

A non-executive director has no administrative or management responsibilities in the company where he is appointed. If he is independent of the management and does not get any other benefits from the company except the director's remuneration. Economic independence can not only be understood superficially, as long as independent directors work hard, do their duty and bear corresponding legal responsibilities for their own mistakes.