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Whether board of directors include whole time directors and managing director

30 December 2019

Whether board of directors include whole time directors and managing director or whole time directors and managing director are different and does not come under board of directors

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2 Replies

Law Aspire (CS) (755 Points)
Replied 31 December 2019

what type of question, you are asking

Chirag (Professional) (1979 Points)
Replied 10 January 2020

Directors are primarily of two types -

Executive Director
Non Executive Director

They are again divided into different parts, depend on size, business, and regulations applicable on it.

Generally Companies Have -

Whole Time director ( Non Rotational*)
Managing Director ( Non Rotational *)
Executive Director (Rotational)
Independent Director ( Non Rotational)
Non Executive director (Rotational Director)

{All such collectively called Board of Directors)

Law also prescribe max no. of director in a company, Which is 15, By shareholders Resolution it may be enhcnaced ,It also prescribe the max no of Companies in which one can act as a director ( 20 cos. & 10 Public / Pvt Co. which is subsidiary of Public Company)

Certain other Regulations (Like RBI/SEBI) mat pose different conditions on composition, qualification of director

MD & WTD are not supposed to hold position as MD/CEO/WTD in another company (Except Group company/ID) due to their whole dedication in the company in which they are appointed..

Quorum Is 1/3 or 2 ,which ever is higher to duly constitute a meeting.

For Appointment /Cessation / Change in designation company file DIR-12 within 30 days of passing resolution.

For MD/WTD ,form MR-01 to be filed after giving of DIR-12