Can you refere any section or as so I am able to show somone
dear sir
I have two quries- 1.what is the difference between independant and professional director as per company act.
2.If th management does not want to provided depreciation on its fixed assets including plant ,building and other assets because the plant was not in operations. is it correct as per company act or as6
25 October 2009
(2) It is not correct because as per the companies act the depn is provided for wear and tear passage of time irrespective of the point it has been utilsied or not.
(1) Independent director is a person who do not have investments more than 2% and also who is not working in that company.
(2) Professional director is a person like ca or advocate or engineering person who is working in that company or having more than 2% of investments in shares.
23 June 2012
Depreciation is to be provided on all fixed assets ,irrespective of the fact, whether it is used or not.Decrease in the value of such assets take place,even if it is not used.It ia charge against profits.
The words " Professional Director " has not been defined in the Companies Act.However , while filing form 32 ,one has to mention ,in the category of directors,whether the said person is a promoter director, independant director or professional director.In the absence of any specific definition in the Act, in my opinion , it should mean a director having specialised knowledge and skill in a particular field.
CAclubindia
