A director is an individual appointed or elected according to law, authorized to regulate and direct the company affairs. Since a company is an artificial juristic personality created by law, it can only act through an agency of natural persons. Therefore, only living persons can become Directors of a company, and the Board of Directors manages the company affairs.

Types of Director in a Company

The following are the types of Director in a company:

Managing Director

A “Managing Director” means a Director who, under the Articles of Association of a Company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial managerial powers of handling the affairs of the company.

Whole-time Director or Executive Director

An Executive Director or whole-time Director is an individual under the full-time employment of the company.

Ordinary Director

An “Ordinary Director” is simply a Director who attends the Board meetings of a company and participates in the matters put before the Board of Directors. These Directors are not whole-time Directors and Managing Directors.

Additional Director

An Additional Director is an individual who is appointed by the Board of Directors between two annual general meetings, subject to the Articles of Association of a Company. Additional Directors hold office only up to the date of the next Annual General Meeting of a company. The number of both Directors and Additional Directors of a company, together, must not exceed the maximum strength fixed for the Board of Directors by the Articles of Association.

Alternate Director

An alternate Director is an individual who is appointed by the Board of Directors in a general meeting to act for a Director called the “original director” during his absence for not less than three months from India. Usually, the appointment is for a Non-Resident Indian (NRI) or foreign collaborators of a company.

Professional Director

Any Director possessing professional qualifications and who do not have any pecuniary interest in a company are called Professional Directors. In large companies, Professional Directors are, at times, appointed to the Board for utilizing their expertise in the company management.

Nominee Director 

Banks and Private Equity investors, granting debt or equity assistance to a company, generally impose a condition for appointing their representative on the Board. These nominated persons are called Nominee Directors.

In a One Person Company (OPC), a Nominee Director is an individual nominated by the sole Director of the One Person Company to take over affairs of the OPC in case of death or incapacitation of the sole Director.

Woman Director

Listed companies and limited companies having a paid-up share capital of a hundred crore rupees or more or turnover of three hundred crores or more are required to appoint at least 1 Woman Director. There is no mandate on the appointment of Women Directors in a private limited company.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.