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Part time vs whole time director

Saurabh Maheshwari (B.com,ACA) (5923 Points)

11 July 2012

Dear all,

Please explain the difference b/w Part time and whole time director ,also explain why partimers are appointed by the members?Please clarify my basics in this regard!

Thanks...

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(Guest)

Dear Saurabh,

"Whole-time Directors" are those directors who are in whole-time employment of the Company, including Managing Director (MD).

"Non-Executive Directors" (In your words, ‘part-timers’) mean Directors on the Board of Directors of the Company, who are not in whole time employment of the Company. They do not participate in the day-to-day management of the firm. They are usually involved in planning and policy making, and are sometimes included to lend prestige to the firm due to their standing in the community. Non-executive directors are expected to monitor and challenge the performance of the executive directors and the management, and to take a determined stand in the interests of the firm and its stakeholders. They are generally held equally liable as the executive directors under certain statutory requirements.