LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Directors

leeladhar (apprentice) (261 Points)

29 March 2012

what are the differences between the Executive and Non Executive Directors ?

Reply
Follow
Share

3 Replies

CS SIDDHARTHA BANIK (COMPANY SECRETARY) (771 Points)
Replied 29 March 2012

Difference of executive and non-executive director is applicable only with the listed co. On plain reading of clause 49 of L.A. it showes that non -executive director means one who sould not have any any material pecuniary relationships or transactions with the company, its promoters, its directors, its senior management or its holding company, its subsidiaries and associates which may affect independence of the director;

Thanks,

CS Siddhartha Banik

2 Like

jeets (CS ) (461 Points)
Replied 29 March 2012

If a director is drawing remuneration then he is a executive director. MD or WTD is always considered as executive directors. In other case its non-executive director.

1 Like

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 29 March 2012

Hi,

1) Executive director is a whole-time employee of the company as well as a director in the same company. Hence, he serves the company in 2 capacities - (a) As an employee of the company. (b) As a member of the board of directors.

Usually Managing Director or WTD are considered as EDs. Non-executive director is only a director of a company and does not serve the company in the capacity of an employee. NED may also be knows as part time director on board.

2) Executive director is not an independent director where as non-executive director may or may not be independent director.

3) Executive director is paid the salary and non-executive director is paid director's fees.

Regards

3 Like