The proprietary and independent directors correspond to two types of external directors who belong to the board of directors of a company or company.
The board of directors has two types of directors: internal and external. The inmates are executive and maintain a contractual relationship with the company. The external ones in as much do not have executive functions and control what the managers do from the outside.
Description of external directors
There are two types of external directors:
- Proprietary directors: these are individuals who have part of the property of the company or represent others who have it. They can influence themselves or in agreements with others in the control of society. Its mission is to ensure that the company is well managed and the resources invested in it have profitability.
- Independent directors : they are individuals who have no employment or property relationship with the company. Usually they are people with experience and knowledge in the sector where the company competes or in business administration in general. Its mission is to offer recommendations from an objective and informed point of view. On some occasions they can also try to positively influence negotiations with other companies or authorities.
External directors and company size
The existence of external directors, both proprietary and independent, depends greatly on the size of the company. Usually we do not find them in small companies, but in those of greater size and influence in the market.