Corporate law

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BISHNU DEO SHARMA (Querist)
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01 July 2009 Dear All,

I want to know that what is the difference between followings:-

a)Director
b)Independent Executive Director
c)Excutive Director
d)Non Executive Director
e)Independent Non Executive Director
f)and finally Independent Director.

Pls. give reply in details so that i should understand it properly.

highly appreciated if u mail me at my below mail id.

Thx & Regards
Bishnu Deo Sharma
bishnu_jsr@rediffmail.com

aditi daga

aditi daga (Expert)
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03 July 2009 An executive director is the senior manager or executive officer of an organization, company, or corporation. The position is comparable to a chief executive officer (CEO) or managing director. An executive director is usually remunerated for his or her work.

Non-executive directors are the custodians of the governance process. They are not involved in the day-to-day running of business but monitor the executive activity and contribute to the development of strategy.

As per clause 49 of listing agreement Independent directors are those who apart from receiving director's remuneration do not have any material relationship withe the directors, promoters, etc which could materially interfere with the existence of independent judgement.They are required for good corporate governance and building up investor confidence.