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it is important to remember that the directors run a limited company and the shareholders or members own and fund it the directors may also be shareholders and are answerable to the shareholders another important point to note is that directors are legally bound to act in the best interest of the company not the shareholders there are two broad types of company director and they are distinct differences between them the first is an executive director executive directors are involved in the day-to-day management of the business they perform operational and strategic functions such as managing people looking after assets managing contracts and so on they are entrusted with making sure that the information presented to the board of directors is an accurate reflection of their understanding of the affairs of the company they are generally employees of the company and are paid a salary theres no requirement for a set number of executive directors in a company it usually depends on the nat