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Executive directors in a private limited company

Mohit Sharma (Student) (56 Points)

14 July 2020

Is it mandatory for a private limited company to have executive directors under Companies Act, 2013? Any provision to support your answer?

Thanks.

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6 Replies

pritesh (delhi) (720 Points)
Replied 19 July 2020

No it's not mandatory

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Niche Compliance (122 Points)
Replied 19 July 2020

No it is not necessary to have executive directors as er companies act 2013.

Mohit Sharma (Student) (56 Points)
Replied 20 July 2020

Hi,

Managing directors are executive directors who are responsible for day-day functioning of the company. Hence, is it practically possible for a private limited company to not have even one executive director (like not even Managing director)? In their absence, who will take care of the company on a daily basis?

Thanks.

Mohit Sharma (Student) (56 Points)
Replied 21 July 2020

Hi,

Could you please provide a bit more clarity?

Mohit Sharma (Student) (56 Points)
Replied 26 July 2020

Hi,

Can you please help me with the second question as well?

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Mohit Sharma (Student) (56 Points)
Replied 27 July 2020

Hi Matt,

Under Section 149 of Indian Companies Act, 2013, private limited companies are required to appoint atleast two directors on its Board of Directors. However, the Act is silent on whether such companies must have executive directors on its Board.

In a situation where there is not even a single executive director on BoD, who takes care of the daily affairs of the company? Can a company function by having only non-executive directors on its Board of Directors?