Executive directors in a private limited company

Is it mandatory for a private limited company to have executive directors under Companies Act, 2013? Any provision to support your answer?

Thanks.

Replies (6)
Quick Summary
This discussion clarifies whether private limited companies are legally mandated to have executive directors under the Companies Act, 2013. While the Act requires at least two directors, it doesn't explicitly state the need for executive directors. The conversation also explores the practical implications and who would manage daily operations if only non-executive directors are appointed.

No it's not mandatory

No it is not necessary to have executive directors as er companies act 2013.

Hi,

Managing directors are executive directors who are responsible for day-day functioning of the company. Hence, is it practically possible for a private limited company to not have even one executive director (like not even Managing director)? In their absence, who will take care of the company on a daily basis?

Thanks.

 

 

 

 

Hi,

Could you please provide a bit more clarity?

Hi,

Can you please help me with the second question as well?

 

Hi Matt,

Under Section 149 of Indian Companies Act, 2013, private limited companies are required to appoint atleast two directors on its Board of Directors. However, the Act is silent on whether such companies must have executive directors on its Board. 

In a situation where there is not even a single executive director on BoD, who takes care of the daily affairs of the company? Can a company function by having only non-executive directors on its Board of Directors?

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