Types of Directors
Whenever you listen to market experts on a business channel you always hear the word director when they are taking about a company or stock. In business or finance world it is a person who holds top position and therefore he or she can be compared to the captain of a ship as it is the director which takes major strategic decisions and therefore the success or failure of a company depends on their decisions. Given below are the various types of directors in a company –
- MD – Managing director or MD is the head of a company and majority of important decision relating to various aspects of business are taken by MD of a company. They are the most powerful person when it comes to position and power in any company.
- Part Time Directors – Part time director as the name suggest are those who are included in the board but they do not come or participate in day to day business of the company unlike full time directors who have to attend every meeting of the company.
- Non Executive Directors – Non Executive Directors are not the employees of the company, they are experts in their field and therefore they are there in the company for specific posts rather than taking strategic decision about the company. Non Executive Directors are also called independent directors.
- Additional Directors – These are appointed between two annual general meeting, and these types of directors are there only until next annual general meeting of the company.
Above categorization or classification is not an exhaustive categorization and other types of directors can also be added or included in the above classification.