what's the difference between CEO,md, chairperson,Promotor , executive director, non executive director?
pls elaborate it
Some terms are not prescribed in the act while defined as per their act ,roles ,responsibilities as per industry trend
CEO - Most popular in USA ,CEO is at par with MD but may or may not be director ,it's a top most executive of company who has general oversee power of the day to day affairs of Company
MD - It's prescribed under companies act prescisely ,that one who involved in day to day affairs of the company but not have any admin powers like draw or endorse any chq ,sign security certificate etc ( unless otherwise permitted by board )
Chairperson - Just a Director who is presiding the meeting , has second vote on equality of votes and has certain powers for adjournment and have final say on contents of minutes ,but again he/she is doing the work under overall authority of board
Promoter - Is a person who has control over the affairs of company ,either due to shareholding rights , voting rights , or any arrangement or agreement and classified as such in shareholding pattern as promoter by the company or in any kind of prospectus or in annual return as promoter ,genrally founders are promoter but may not hold true always
Executive Director - Directors who are in whole time employment of company ,for specific roles also like Director - Finance ,Director - Sales etc...
Non Executive Director - Who are not regular one and posses some specialised knowledge in domain area of company ,if they are not fitting into IDs definition criteria will be Non Executive else may also be appointed as Non Executive Independent Director
Even though not asked I'm extending two more categories
Whole Time Director - Executive Directors who are appointed u/s 203 are Whole Time Director
KMP - Positions prescribed under sec 203 is KMP ,
one person can also hold two positions ,like Chairman Cum MD or MD & CEO ,CFO & Director etc
Max Limits on directorship
Companies act --. 20 Cos out of which Max 10 can be Public or deemed public
SEBI - Max 7 Listed Cos ( Equity )
Independent directorship - If person is Listed company whole time director than 3 Listed entity only
Committee position - Max 10 and Chairmanship Max 5 ( Only Audit and SRC)
I hope you will find it helpful..
CAclubindia
