There are a number of different categories of director as follows:
Executive directors – These are actually involved in the management of the company and would normally be employed under service agreements as both a director and employee of the company
Non-executive directors – These are not usually actively involved in the day to day management of the business and would normally work on a part time basis.
Nominee directors – These are appointed by a particular group of shareholders to sit on the board of the company to monitor its activities.
Alternative directors – These are appointed by the other directors to take their place on the board in certain circumstances, subject to the Articles of Association of the business.
De Facto directors – This is a term applied to individuals who have not been properly appointed to a board but claim or purport to be a director of the business.
Shadow directors – These are individuals whose advice and direction is acted upon by the permanent directors of the board for example, a solicitor.
Directors who work full time on the management of a company’s affairs are usually both officers and employees of the company. Where directors are employees, they are bound by the implied duties applicable to all employees and any express terms within their Contracts of Employment.