Non executive director

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Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2013 In a private limited company here are only two directors out of which one is an executive director.can the other director be a non executive director or is it mandatory to have both directors as executive only.
please explain as no clarification is given in companies act.

Ajay Mishra

Ajay Mishra (Expert)
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15 July 2013 Hi

It is not mandatory to have both director executive or non executive director. Its totally depend on the management that such director will be executive or non executive.

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2013 but there is still doubt as because only two directors are there can one be a non executive director.also whether he would be equally liable for any defaults committed on his part?

Ajay Mishra

Ajay Mishra (Expert)
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15 July 2013 No issue, You can have one director as non executive director.

Yes, directors will be equally liable, unless specifically mentioned that such director is responsible for such activity.

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2013 Thanks a lot sir.

Ajay Mishra

Ajay Mishra (Expert)
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15 July 2013 My Pleasure...........

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