Inside Director Law and Legal Definition

An inside director is a director who is also employee, officer, or major shareholder of the corporation. For example, a Chief Executive Officer who is also Chairman of the Board would be considered an inside director. A Chief Financial Officer, Executive Vice President, or other corporate executive who is a member of the board is also an inside director. Inside directors commonly enjoy seats on boards because they own equity in the company. Inside directors exist to represent the interests of stakeholders in the company.