21 February 2017
What is "Whole time director"? What is meant by "Authorized Signatory"?
Can a director, who has issued 25 odd cheques of a private limited company on different-different dates and signed Loan documents on behalf of company as its authorized signatory, but has never involved in real business of the company be termed as "Whole time director"?
22 February 2017
As per Section 2 clause 54 of Companies Act, 2013
Whole-time Director means a director in the whole-time employment of the company. In other words, a director employed to devote the whole of his time and attention in the carrying on of the affairs of the Company.
An authorized signatory is an individual who has legal power to sign an official document on behalf of the company.
In your case merely signing of cheque in the capacity of authorised signatory does not make any person a whole time director
CAclubindia
