A whole-time director is a full-time employee of a company, who is entitled to receive remuneration. A whole-time director is appointed by the shareholders of the company.
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NEW DELHI: In order to facilitate smooth succession planning for banks, regulator Reserve Bank of India (RBI) has mandated that the lenders should have at least two whole-time directors (WTD), including the MD & CEO, on their boards.
In a notification issued on Wednesday, the RBI said banks that do not currently meet the minimum requirement are advised to submit their proposals for the appointment of WTD(s) within a period of four months from the date of issuance of the notification.
A whole-time director is a full-time employee of a company, who is entitled to receive remuneration. A whole-time director is appointed by the shareholders of the company.
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The RBI in its notification said while two WTM is mandatory, the total number of whole-time directors should be decided by the Board of the bank by taking into account factors such as the size of operations, business complexity, and other relevant aspects.
