TYPES OF DIRECTORS
1. FIRST DIRECTOR - The
first directors are those who have been in place when the firm was
incorporated. In public, private, and one-person companies, minimum director
requirements are 3, 2, and 1, respectively.
2. EXECUTIVE DIRECTOR –
A full-time employee of a firm, an executive director is a director.
3. NON-EXECUTIVE
DIRECTOR – A non-executive director is a functioning director who is not an
executive director of the organisation.
4. RESIDENT DIRECTOR:
To qualify as a resident director, a corporation must have at least one
director who has spent at least 182 days in India during the previous calendar
year.
5. WOMEN DIRECTOR: It is mandatory for all publicly traded firms and public companies with paid-up capital of at least Rs. 100 crore OR with a revenue of at least Rs. 300 crore to appoint a woman director to their board of directors.
6. ADDITIONAL DIRECTOR—An additional director is a director who is appointed in a board meeting (as opposed to someone who is not appointed in the general meeting) and who serves until the following annual general meeting, or until the deadline by which the AGM should have been held, whichever comes first.
7.ALTERNATE DIRECTOR—An alternate director is a director who has been designated to fill in for a director who has been absent from India for at least three months.
However, a director of the same firm who also serves as a director's alternate is not eligible to be appointed as a director's alternate.
A shareholder who owns shares with a nominal value of up to 20,000 rupees (or another specified amount) is considered a small shareholder.
10.
DIRECTOR IN CASUAL VACANCY - A director in casual vacancy is appointed to
replace a director who leaves his position before serving out the remainder of
his term and was elected at a general meeting.
11.
PROFESSIONAL DIRECTOR - A director may be appointed as a professional director
if they have knowledge and skills in a particular field and are able to
contribute to the board's decision-making.
12.
INDEPENDENT DIRECTOR - A director who has no material or financial interest in
the firm or with the directors is considered to be independent. This excludes
managing directors, whole-time directors, and nominee directors. Due to scams
committed by Indian company boards, this type of director is receiving a lot of
attention these days.
13.
SHADOW DIRECTOR: Although this type of director is not formally appointed, the
company's board follows his instructions.
14.
DE-FACTO DIRECTOR—A de facto director serves without being elected as one, yet
he is nevertheless held responsible by the firm for his deeds while serving in
that capacity.
Poonam Sharma
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