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Directors

D. leela vara prasad (visakhapatnam) (34 Points)

28 March 2018

Difference between executive director and non-executive director

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3 Replies

Moin Ali (33 Points)
Replied 28 March 2018

Executive director is whole time director
non executive director is part time director

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CS Smreti (cs) (641 Points)
Replied 29 March 2018

non executive dir are basically those who dnt participate in day to day activities but only attend meetings of thw Board.

Jatin Bajaj (CS) (2930 Points)
Replied 30 March 2018

As per Rule 2(k) of Companies Rules, Executive Director means the whole time director of the Company

and as per section 2(94) of the Commpanies Act 2013, whole time director means the Director who is in whole time employment of the Company.

So executive Directors means the director who are in pay roll of the Company. They are paid the salary as per the provisions of their employment. they are the permanent employees of the Companhy.

Non executive Directors are those directors who are not paid salary on basis of employment of the Company. They can be paid salary on basis of their professional capacity. Non executive Directors are not involved in day to day operational activities of the Company. Example Independent Directors