TYPES OF BOARD OF DIRECTORS
The Companies Act, 2013 provides for several types of directors to remain on the Board. Mandatorily on in certain circumstances. The various types of board of directors are:
ALTERNATE DIRECTOR
As per section 161(2) of the companies Act, 2013 which provides for the appointment of an alternate director by the board to substitute an existing director during his absence from India. For a tenure not less than three months.
EXECUTIVE AND NON-EXECUTIVE DIRECTOR
An executive director is involved in the daily running of the organization. He or she involved in making a decision that affects daily operation. He is a whole-time director involved in day-to-day management.
A non-executive director is not involved in the day-to-day transactions of the firm. But he gives an independent opinion on any sensitive issues to the committee or group of which he is part. According to the companies Rules, 2014.
INDEPENDENT DIRECTOR
Directors have been introduced in the Companies Act, 2013 for the first time. It means a person who possesses integrity, relevant expertise, and experience as a director. And who does not have any personal or pecuniary relationship with the promoters and management of the company?
NOMINEE DIRECTOR
If authorized by the article of association, who can appoint any person who is nominated by the shareholder or creditor or any stakeholder in a company to be a nominee director. It represents the interest of its nominated and ensures the smooth functioning of the company.
WOMAN DIRECTOR
It enables women to be a part of policymaking in companies. The companies Act 2013 mandates the appointment of one woman as a director on board of all listed companies and specific public companies with paid-up share capital of Rs 100 crores or turnover of Rs 300 crores.
SHADOW DIRECTOR
Shadow director has been not formally appointed as a director but acts as a director. He or she has the same liabilities and responsibilities as another director. Has the same influence on the decisions of the boards.
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. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Legal and Tax shall not be responsible for any errors caused due to human error or otherwise.
