Question

kelly clifton was just appointed to the board of directors at greenlight corporation. although she was not previously employed by greenlight, she does have a relationship with the firm. she has consulted greenlight from time to time about potential mergers and acquisitions. kelly is an example of what type of board of director?

Answer 1

Kelly Clifton, serving on Greenlight Corporation's board after consulting on mergers and acquisitions, exemplifies an outside director. These directors are independent from daily operations and are appointed for their industry expertise.

Step-by-step explanation:

Kelly Clifton's appointment to the board of directors at Greenlight Corporation, despite not being previously employed by the corporation but having a consultancy relationship, makes her an example of an outside director. Outside directors are chosen for their expertise and to provide objective, independent judgments on issues affecting the company.

They are often sought for their specialized knowledge or understanding of the industry, and unlike inside directors, they do not generally have a day-to-day role in the firm. While they provide oversight, the top executives of the company typically have a significant influence in nominating these board members to represent the interests of shareholders.