Final answer:
An individual who serves as a member of the board of directors and is also an officer of the company is referred to as an inside director. Their roles enable them to have a deep understanding of the company's inner workings, which can be beneficial for corporate governance and shareholder interests.
Step-by-step explanation:
A member of the board of directors who is also an officer of the corporation is known as a(n) inside director. Inside directors are individuals who are simultaneously directors on the board and also hold executive-level positions within the company.
This dual role gives them a unique perspective on business operations and strategy but can potentially lead to conflicts of interest. It is the responsibility of corporate governance to ensure that the activities of inside directors, as well as a company as a whole, align with the best interests of the shareholders. Although top executives hold significant influence in nominating board members and shaping the board's composition, effective governance should maintain a balance between the insights provided by inside directors and the oversight required to protect shareholders' investments.