31 December 2012
can a single person can act as Promoter, Chairman, Managing Director, and Executive Director in a company ? is Executive Director important to company ?
31 December 2012
Promoter is one who promotes/owns the company
Chairman is the one who presides any Board OR General Meeting.This designation generally given to the promoter who has maximum ownership but not always. Like Hero Motors has BM Munjal as its Chairman who is promoter also whilte ITC has YC Deveshwar as non promoter Chairman.
Managaing Director is one the Directors who is entrustred with substabtial power of managing the affairs of the Company.
Executive Director is one of the Directors who works on a whole time basis.It is more popular in PSU Banks etc.
Yes Executive Director is an important Designation because he manages the Company on day to day basis and is amongst the Board of Directors and if there is no Managing Director in the Company then he is most powerful man in the Company.
05 January 2013
There should be minimum number of directors in the company if it is a private limited then 2 otherwise minimum 3. Out of the minimum number MD, ED etc are appointed.
Chairman is only for any particular meeting there is no such designation as per the Company's Act.
If a person is appointed as the MD he can only be the MD or MD cum chairman but ED has to be a different person. MD is the most powerful person in the company.
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