Query Regarding Non-Executive Director

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This query is : Resolved

Guest

Guest (Querist)

03 November 2009 A is a director in a limited company.

A is getting 'only' commission from the company.

Can we say that A is an Executive Director or a Non-Executive Director ?

(Is it that if a director gets remuneration by way of any kind shall be obviously considered as Non-Executive Director)

Experts' response awaited.

CS. Ashish Shah

CS. Ashish Shah (Expert)

03 November 2009 Dear Deekay,

A non-executive director can also be paid remuneration by getting commission, he cannot be considered as an Executive Director See Section 309 of the Companies Act.

It is the resolution of the Board and/or shareholders by which the category of the directors will be decided and not by way of remuneration.

Many listed and reputed companies are paying a commission to their independent non-executive directors.

Tell me one thing are you here for checking the knowledge of the experts' or what?

Regards,

Ashish Shah
Company Secretary

Guest

Guest (Querist)

03 November 2009 Dear Ashish,

Thanks for your response.
I posted my query for the purpose of filling Form 25A (for waiver of excess remuneration paid).
Ashish, you may rest assured that I am a person, who would like to see knowledge/experience in any kind of work I handle.
I would like to mention that I am neither an EXPERT nor a professional like you.
I have the habit of posting my query to our CACLUB, the moment I develop doubt (even it is a negligible one).
My intention is to have confidence 100% on the work I do.
I am not a person here to check the knowledge of the experts. According to me, TIME is greater than MONEY.
Hope, you are now convinced.