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Appointment of Company Secretary as Director of Public Co.

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Guest (Querist)
22 February 2010 Whether a company secretary in employment of a listed public limited company drawing salary of Rs. 40,000/- per month can be appointed as Director in that company ?

Esteemed experts are requested to reply to the query substitiating relevant circular/ clarification/ case law.

With Regards,

Neha Jain
nehajaincs@gmail.com
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Ankur Garg

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Ankur Garg (Expert)
22 February 2010 Yes.

A company secretary may be appointed as a director. But by virtue of explanation to section 269 such appointment would be equal to appointment of WTD and compliance with section 269 is mandatory.

But by virtue of a DCA clarification in this regard if you appoint CS as director then no need to comply section 269 irrespective of its applicability provided substantial powers of management are not given to such CS on appointment as a director.

So by passing a board resolution you may appoint CS as director.

Regards
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