difference between executive director & whole time director
ashish
(Querist) 15 January 2010
This query is : Resolved
please clarify the difference between executive director & whole time director.if any
Raj Kumar Makkad
(Expert) 15 January 2010
Executing director means a director who executes the decisions of the directors and he may be working part time or whole time whereas whole time director devotes his whole energyy towards the company may he not be an executive director.
A V Vishal
(Expert) 15 January 2010
As per the explanation under section 269 of the Companies Act, a whole-time director includes a director in the whole-time employment of the company. In other words, a director who devotes his whole time to the affairs of a company is called a whole-time director of the company. A whole-time director of a company cannot accept the position of a whole-time director in other companies, though he may accept office of non-whole-time director in other companies subject to the limits imposed by section 275 read with sections 277 and 278.
Unfortunately the Companies Act has not defined an Executive Director in the Act, hence An executive director is the senior manager of an organization, company, or corporation. The position is comparable to a chief executive officer (CEO) or managing director. An executive director is remunerated for his work. Further even an Whole time Director can be an Executive Director but not Vice versa.
B K Raghavendra Rao
(Expert) 15 January 2010
Executive Director is an employee of the Company. He works for the company. Executive Director may be a whole time director or part time director and draws salary.
Whole time director may be one of the directors of a family managed business company. He may or may not accept salary. He may be a Director on the Board of Directors yet function for the company as a whole time director.
A V Vishal
(Expert) 15 January 2010
Mr Rao
Can you quote the authority for the definition given by you for a WTD.
B K Raghavendra Rao
(Expert) 15 January 2010
Private Limited Companies would have family members as the Directors. The Director acts as Managing Director or simply a Director and works whole time for the company. But his remunerations would not be in the form of salary.
A V Vishal
(Expert) 15 January 2010
Mr Rao
Not all Private limited companies have family members as directors. The Companies Act has already defined Director/WTD/MD, kindly refer to the act for more details.
SANJIB SAHU
(Expert) 15 January 2010
The term executive director and the whole-time director have not been defined in the companies act except saying that he is in whole time employment of the company.An executive director may also be called whole-time director.
The directors who are in employment of the company are called as executive directors or inside directors.A whole-time director and managing director are covered in this category of directors.The inside directors possess in-depth knowledge about the affairs of the company.They are generally connected with the policy formulations of the company and take active interest in the day to day affairs of the company since their remuneration depends on successful operation of the company.
ashish
(Querist) 16 January 2010
dear all thanx to all of you taking part in this knowlegable discussion.
I would like to know that if a director working with a company as an executive director that means he is working as an employee of the company and if he is working as an employee of the company and also a director is it means that he is WTD and we have to comply all the requirements of section 198, 268, 269, 309 and schedule XIII wheather the paid up capital of company is less than 5 crores?
please suggest.
