definition of executive director and non-executive director

[hiral patel]

Hello members,

please provide definitions of executive director and non-executive director.

[Ashutosh Shukla]

Hi, 

There are no specific definitions of these terms, to be true. However, Regulation 17(1) of the SEBI (LODR) Regulations 2015 indicates that they are nothing but directors and independent directors, as defined under Sections 2(34) and 149(6) of the Companies Act 2013. The term independent director is also used alongside non-executive directors because they may not always be independent. Example: Nominee Directors. 

Thanks and Regards,

CS Ashutosh Shukla

[hiral patel]

THANK YOU SIR

I HAVE ONE QUERY REGARDING DEMAT ACCOUNT IN NSDL.

I HAVE APPLIED FOR DEMAT SHARES IN NSDL BUT NOT SUBMITTED AND NOT CONFIRMED APPLICATION.

IT'S JUST SHOWS IN MODIFIED DETAILS.

I WANT TO DELETE THAT APPLICATION IN NSDL SITE.

WHAT WILL BE THE STEP TO REMOVE THAT ENTRY FROM MODIFIED DETAILS.

PLEASE ADVISE REGARDING THIS. 

HIRAL PATEL

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[Ashutosh Shukla]

Hi, 

I reviewed my older post and would like to add these two provisions to the above answer for better clarity. Please check Rule 2(1)(k) of the Companies (Specification of definitions details) Rules, 2014, which specifically provides that the executive directors are whole-time directors as defined in clause (94) of section 2 of the Companies Act 2013. Further, regarding the non-executive directors, Regulation 16(1)(b) of the SEBI (LODR) 2015 says that "independent director" means a non-executive director, other than a nominee director of the listed entity." Thus, as I had said in the earlier post, a non-executive director can be both an independent or a nominee director. Based on Rule 2(1)(k) of the Companies (Specification of definitions details) Rules, 2014, it can also be inferred that a director who is not a whole-time director is a non-executive director. These provisions are directly related to your question and can be relied upon. 

Thanks and Regards, 

CS Ashutosh Shukla

[Rajesh]

My interpretation is like this

01.  Executive Directors are those Directors who take part in the affairs of the Company and hence entitled to Salary

02.  Non-Executive Directors are those Directors who participate in Board Meetings only and thus are entitled to Sitting Fees only.

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