{"id":2721,"date":"2019-11-18T18:16:26","date_gmt":"2019-11-18T12:46:26","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=2721"},"modified":"2019-11-18T18:16:26","modified_gmt":"2019-11-18T12:46:26","slug":"types-of-directors-in-company","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/","title":{"rendered":"Different Types of Directors in a Company"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A Director is one of the persons appointed by the board of a company who supervises, manages, and controls the affairs of the company. In this article, we will discuss the types of directors in a company.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2725 aligncenter\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/11\/types-od-Directors.png\" alt=\"Types of Directors in a Company\" width=\"700\" height=\"400\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/11\/types-od-Directors.png 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/11\/types-od-Directors-300x171.png 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/11\/types-od-Directors-20x11.png 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >In this article, we will discuss about...<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1e73be;color:#1e73be\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1e73be;color:#1e73be\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/#Required_Number_of_Directors_in_a_Company\" title=\"Required Number of Directors in a Company\">Required Number of Directors in a Company<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/#Types_of_Directors\" title=\"Types of Directors\">Types of Directors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/#Independent_Director\" title=\"Independent Director\">Independent Director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/#Managing_Director\" title=\"Managing Director\">Managing Director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/#Residential_Director\" title=\"Residential Director\">Residential Director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/#Small_Shareholder_Director\" title=\"Small Shareholder Director\">Small Shareholder Director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/#Woman_Director\" title=\"Woman Director\">Woman Director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/#Additional_Director\" title=\"Additional Director\">Additional Director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/#Alternate_Director\" title=\"Alternate Director\">Alternate Director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/#Nominee_Director\" title=\"Nominee Director\">Nominee Director<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/#Duties_of_Director\" title=\"Duties of Director\">Duties of Director<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Required_Number_of_Directors_in_a_Company\"><\/span><b>Required Number of Directors in a Company<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As per <\/span><span style=\"font-weight: 400;\">Section 149(1)<\/span><span style=\"font-weight: 400;\"> of the Companies act, 2013, Every Company requires following no of directors<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In the case of Public Company, a minimum no of 3 directors required.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In the case of a <a href=\"https:\/\/aktassociates.com\/blog\/private-limited-company-registration\/\">Private Company<\/a>, a minimum no of 2 directors required.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In the case of <a href=\"https:\/\/aktassociates.com\/blog\/one-person-company-registration-procedure-documents-india\/\">One Person Company<\/a>, a minimum no of 1 director is required.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A Company can appoint a maximum no of 15 directors.<\/span><span style=\"font-weight: 400;\"> if a company wants to appoint more directors, it can do so by passing a special resolution.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Types_of_Directors\"><\/span><b>Types of Directors<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Following are the list of different types of Directors in a Company<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Independent Director<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Managing Director<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Residential Director<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Small Shareholder Director<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Woman Director<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Additional Director<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Alternate Director<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nominee Director<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Independent_Director\"><\/span><b>Independent Director<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Independent Director is the director other than a managing director or whole-time director or a nominee director, who doesn\u2019t have any direct or any pecuniary relationship with the company, its holding, subsidiary or associate company, or with their promoters, or directors of the Company. Such Director is a person of integrity and possesses relevant expertise and experience.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tenure of appointment of such Independent Director of the company is for a <\/span><span style=\"font-weight: 400;\">term up to <\/span><span style=\"font-weight: 400;\">5 consecutive years from the date of appointment. Such Independent director after completion of <\/span><span style=\"font-weight: 400;\">a term<\/span><span style=\"font-weight: 400;\"> shall be re-appointed, subject to the board approval by way of passing a special resolution.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Every listed public company shall have at least one-third number of the total number of directors as independent directors.<\/span><\/p>\n<p><strong>\u00a0CG has prescribed the Following Companies are required to appoint at least 2 Independent Directors<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A Public company having Paid-up share capital of Rs.10 Crores or more<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A public company having a turnover of Rs.100 Crores or more<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A Public company having Outstanding Loans or Debentures or Deposits of Rs.50 Crore or more.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Managing_Director\"><\/span><b>Managing Director<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As per the provisions of section 2(54) of the companies act, 2013, a managing director is a person who has been charged with substantial powers of management of the affairs of the company either by virtue of the articles of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Residential_Director\"><\/span><b>Residential Director<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As per <\/span><span style=\"font-weight: 400;\">Section 149(3)<\/span><span style=\"font-weight: 400;\">, Every Company is required to appoint at least one resident director. A resident director is a director who has stayed in India for at least 182 days in the previous calendar year.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Small_Shareholder_Director\"><\/span><b>Small Shareholder Director<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As per Rule 7 of the Companies (Appointment and Qualification of Directors) Rules 2014, a listed company is required to appoint a Small shareholder director elected by small shareholders, upon the notice of not less than one thousand small shareholders or one-tenth of the total number of such shareholders, whichever is lower.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2018Small Shareholders\u2019 means a shareholder holding share of the nominal value of not more than Rs. 20,000.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Woman_Director\"><\/span><b>Woman Director<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Every <a href=\"https:\/\/aktassociates.com\/blog\/public-limited-company-registration\/\">Public limited Company<\/a> is required to have at least one-woman director if such companies satisfy any of the following criteria\u2019s<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A company whose securities are listed on the stock exchange<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A <\/span><span style=\"font-weight: 400;\">public company<\/span><span style=\"font-weight: 400;\"> having paid-up share capital of Rs.100 crore or more<\/span><span style=\"font-weight: 400;\"> OR<\/span><span style=\"font-weight: 400;\"> having a turnover of Rs.300 crore or more.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Additional_Director\"><\/span><b>Additional Director<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As per the provisions of section 161 of the Companies act, 2013, Board of Directors if authorized by the articles of association of the company shall appoint an additional director who can occupy their post until the date of conclusion of the next <a href=\"https:\/\/aktassociates.com\/blog\/annual-general-meeting-under-companies\/\">Annual General Meeting<\/a> or the last date on which the annual general meeting should have been held, whichever is earlier.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Alternate_Director\"><\/span><b>Alternate Director<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">An Alternate Director is the person appointed by the<a href=\"https:\/\/aktassociates.com\/blog\/board-resolution-for-registration-under-the-goods-and-services-tax-act\/\"> Board of Directors of the company<\/a> as a substitute to a director who is absent from India for the period, not less than 3 months.<\/span><span style=\"font-weight: 400;\"> An alternate director shall hold office up to the tenure of the original director and he shall vacate office as soon as the original director returns to India.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Nominee_Director\"><\/span><b>Nominee Director<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A Nominee Director is the Director nominated by any financial institution, or by any government, or by any other person to represent its Interests in case of oppression or mismanagement.<\/span><\/p>\n<h3><a href=\"https:\/\/aktassociates.com\/start-a-business\/private-limited-company-registration\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2057 aligncenter\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/09\/Register-Your-company.png\" alt=\"company registration\" width=\"700\" height=\"150\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/09\/Register-Your-company.png 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/09\/Register-Your-company-300x64.png 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/09\/Register-Your-company-20x4.png 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Duties_of_Director\"><\/span><b>Duties of Director<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To act in accordance with the Articles of Association of the Company (AOA)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A director of a company is required to act in good faith in order to promote the objects of the company for the sake of the benefit of its members as a whole, and in the best interests of the company, its employees, the shareholders, and the community and for the protection of the environment.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A director of a company has to exercise his\/her duties with due and reasonable care, diligence and skill and shall exercise independent judgment.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A director of a company should not involve in such a situation which may conflict, or possibly may conflict, with the interest of the company.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A director of a company should not attain or attempt to attain any undue gain or advantage either to himself or to his relatives, partners, or associates<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A director of a company should not assign his office and any assignment so made shall be void.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>A Director is one of the persons appointed by the board of a company who supervises, manages, and controls the &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Different Types of Directors in a Company\" class=\"read-more button\" href=\"https:\/\/aktassociates.com\/blog\/types-of-directors-in-company\/#more-2721\">Read more<span class=\"screen-reader-text\">Different Types of Directors in a Company<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":2726,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Different Types of Directors in a Company AKT Associates<\/title>\n<meta name=\"description\" content=\"In this article, we will discuss the types of directors in a company. 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