Executive director & Independent Director

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C.S. CHANDANI SARUPARIA (Querist)
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24 September 2010 1. What is the meaning of an executive Director. If there are 3 directors in a company, what is the minimum no of executive director. CAn all 3 be non - executive.

2. Whether an Independent director is one who does not have any shareholdong in the company

Ankur Garg

Ankur Garg (Expert)
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24 September 2010 Hi Seema,

Normally MD/WTD and a director drawing salary are considered as executive director. Rest of the directors are considered as Non-executive directors.

Promoters of the company are not executive director automatically.

Independent director can be a shareholder of the company but he should not have material monetary interest in the company.

Regards