Khushboo Maheshwari (Company Secretary) (548 Points)
20 September 2013Stuck in a problem
We have to submit some details of our directors to our lender banks. One of these is to state whether the director is executive or non executive. Few of our directors were appointed in year 2004 and in the Form 32 being used that time there was no column of executive / non executive. So how to know whether a director is executive or non executive or should it be presumed that all directors of that time are executive.
Please advice...
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 20 September 2013
The term 'Executive Director' is not defined in Companies Act 1956. However, Rule 1.2(1)(l) of draft Rules published under Companies Act 2013 states that ED means a WTD as defined in Sec.2(94) of the Act. Sec.2(94) of 2013 Act says WTD includes a director in the whole-time employment of the company.
Going by the legislative intent we can conclude that a director drawing remuneration from the company may be treated as director in whole-time employment of the company and hence he is an ED.
Ajay Mishra
(Company Secretary)
(74337 Points)
Replied 22 September 2013
Hi
As per my views Director's Report of the company will give the details of directors in which we will give the details of directors. You can also check the same in notes to accounts of the Balance sheet in which related party transaction will be given in which you will given the details of director remuneration.
The remuneration is not the only criteria for judging a director who is executive or not.
Sarvesh
(Company Secretary)
(179 Points)
Replied 25 September 2013
Hi, you can also check from the resolutions passed for appointment of such directors.
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