Business Ethics and Corporate Governance, Second Edition

KINDS OF DIRECTORS

A director may be a full time working director, namely, managing or whole time director covered by a service contract. Managing and whole time directors are in charge of the day-to-day conduct of the affairs of a company and are together with other team members collectively known as ‘management’ of the company. A company may also have non-executive directors who do not have anything to do with the day-to-day management of the company. They may attend board meetings and meetings of committees of the board in which they are members. We can recognize another category of directors as per certain provisions of the Indian Companies Act—’Shadow Directors’. These so-called ‘deemed directors’ acquire their status by virtue of their ...