Managing director & executive director

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Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2014 Can You please define Executive Director and Non Executive Director and if a managing Director not withdrawing any salary then also he comes under definition of Executive Director.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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25 July 2014 Executive director is that person of a company, who is assigned with the overall charge and operation of some department of the company. While on the other hand, a non-executive Director has no part to play in the operational field of the company. However, he enjoys the same position in the Board in the decision making process, as the executive directors have. His role is limited to participation in the Board level meetings only for which he is paid a per meeting fee, while the executive director executes his assigned functions on day to day basis as a salaried employee of the company for which he gets monthly salary and other benefits, as fixed by the Board.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2014 Where a Managing Director not withdrawing any salary from company also be said as Executive Director but managing affairs of the company