Executive Director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 January 2011 Hello All

My query is even if the director is not on the board and is in full time employment of the Company, can he been named as executive director for the public unlisted company. Whether legally it is advisable.

udit sharma

udit sharma (Expert)
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11 January 2011 In my opinion, the definition of the term'Director'includes any person occupying the position of Director by whatever name called.

Since the person in question is a Director who is in full time employment of the Company, he will be a Whole time Director and will fall within the ambit of the term'Executive Director'.

Experts pls.correct me if i m wrong....

God Bless

CS Udit Sharma

Querist : Anonymous

Querist : Anonymous (Querist)

11 January 2011 Please note that as per my Articles the definition of the directors is "The directors for the time being of the Company or, as the case may be, the Directors assembled at a meeting of the Board or acting by circular resolution under the Articles. Even in this case the above solution is applicable. Pl advise.

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Jayashree S Iyer

Jayashree S Iyer (Expert)
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13 January 2011 A director is a member of the Board. If a person is just designated as ED and not on the Board, he will not be considered a Director of the company.

With regard to naming an employee as ED, though the designation is misleading many companies are designating Sr. Management people as ED, etc. without actually having them on Board.