The following are the types of Director in Company:
- Managing Director- A “Managing Director” means a director who is legally entrusted with substantial powers of management of affairs of the company.
- Whole-time Director or Executive Director- An Executive Director or whole-time Director is a director who is in full-time employment of the company.
- Ordinary Director- An “Ordinary Director” means a simple Director who is neither a whole-time Directornor a Managing Director.
- Additional Director- An Additional Director is appointed by the Board of Directors between two annual general meetings. Additional Directors shall hold office only up to the date of the next annual general meeting of the Company. Appointment of Additional Directors and their number/ strength is determined by the Articles of Association.
- Alternate Director- An Alternate Director is generally appointed by the Board of Directors during the absence of an “original director” for a period of not less than three months. Generally, alternate Directors are appointed for a person who is Non-Resident Indian (NRI) or for foreign collaborators of a company.
- Professional Director- Any Director possessing professional qualifications and do not have any pecuniary interest in the company are called Professional Directors. In large companies, Professionals are sometimes appointment to the Board to utilize their expertise in the management of the Company.
- Nominee Director- Banks and Private Equity investors who grant debt or equity assistance to a company generally impose a condition as to appointment of their representative on the Board of the concerned Company. These nominated persons are called as nominee Director.
In a One Person Company (OPC), a nominee Director is someone nominated by the sole Director of the One Person Company to take over affairs of the OPC in case of death or incapacitation of sole Director.