What is fundamental difference in the roles, responsibility and legal powers of:
> Independent Director
> Non-executive Director
> Whole time Director
In the real worlds, why companies appoint directors with these various designations?
Thanks.
Panther (Self Employed) (41 Points)
16 July 2010
What is fundamental difference in the roles, responsibility and legal powers of:
> Independent Director
> Non-executive Director
> Whole time Director
In the real worlds, why companies appoint directors with these various designations?
Thanks.
vivek
(CS)
(751 Points)
Replied 16 July 2010
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 17 July 2010
Hi Panther,
I would like to answer ur second question that why co.s appoint directors of various types?
One interesting fact is that co. has nothing to do with various types of directors. Co. Act has prescribed these various types so as to control co.s effectively coz each & every type of director has different method of appointment and tenure.
Following are various types of directors (don’t confuse them with practical types like executive or non-executive, following are types as per Co. Act not as per MCA 21)
Sec. 252 – Small shareholder director
Sec. 254 – first directors
Sec. 255/256 – re-appointment of retiring director
Sec. 257 – appointment of director other than retiring director
Sec. 260 – additional director
Sec. 262 – appointment of director in casual vacancy
Sec. 313 – alternate director
Sec. 408 – director appointed by central govt.
Financial institution nominee director
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