• Directors of a company

What is the difference between an executive director and a non-executive director of a company? What is the criteria for designating a director as executive director?
Asked 10 years ago in Business Law

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1 Answer

An executive director is a member of the board of directors and an employee of the company. He/she will have a specific role such as finance director and as such be responsible for the day to day running of the company within his sphere.

A non executive director is a member of the board who is not an employee but appointed for his/her expertise and takes a part in decision making at board meetings. Sometimes non executive directors may get involved in such things as disciplinary hearings, especially for high ranking employees.

Pawan Kumar
Advocate, Chandigarh
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