04 March 2013
I have got mail from MCA for resubmission of Form 32 as Form 32 shows directors as executive director and Articles shows directors only withot specifying about executive director. Now I want to resubmit Form 1 with changed articles and not form 32 AM I RIGHT
I think it is not required to mentioned in AOA of the company that director appointed should be executive director. It is management decision, whether he will be appoint as executive or non executive.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
05 March 2013
Sir Can you please say me advantages or disadvantages of non executive director and executive director
02 August 2025
Here’s a quick clarification on your urgent query about **resubmission of Form 1A and Form 32** regarding directors listed as executive directors:
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### Key points:
1. **Executive Director vs Non-Executive Director in AOA:** Generally, the **Articles of Association (AOA)** do **not** specify whether a director is executive or non-executive. This is a **management-level classification**, not a legal status that needs to be in AOA.
2. **Form 32 Filing:**
* Form 32 is used to notify changes in directors, including their appointment, resignation, or change in designation. * If the MCA asks for clarification on executive director status, you **resubmit Form 32** with appropriate details.
3. **Form 1 / Form 1A:**
* Form 1 or Form 1A is for incorporation or alteration of AOA/MOA. * If your AOA doesn’t mention "executive director" and you want to include it, **only then** you need to file Form 1A for AOA amendment.
4. **Your scenario:**
* Since **executive/non-executive is a management decision** and not a mandatory mention in AOA, **you do not need to amend AOA** via Form 1. * Just **resubmit Form 32** clarifying the director’s status as executive director as per MCA’s communication.
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### About your additional query on **advantages/disadvantages of executive vs non-executive directors** and **remuneration:**
* **Executive Director:**
* Involved in day-to-day management of company operations. * Usually draws salary/remuneration. * Holds an employment contract.
* **Non-Executive Director:**
* Not involved in daily management. * Provides oversight, governance, and strategic input. * Usually receives sitting fees or fixed remuneration, not salary.
* **Remuneration:**
* Executive directors get salary + perquisites under managerial remuneration rules. * Non-executive directors generally get fees or commission within limits under Companies Act.
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If you want, I can help draft the resubmission Form 32 or suggest a format to clarify the executive designation.