Aditya Kothari (Chartered Accountanct) (29 Points)
11 June 2016Can a person who is a whole time director with a public limited company having paid up capital of Rs. 3 crore be appointed as an employee too in other public limited company having a paid up capital of Rs.7 crores. Answer in context with section 203 read with rule 8.
CS Arjun Rajagopal
(B.com, ACS)
(1056 Points)
Replied 11 June 2016
Sec 203(KMP) is not applicable in your case because your company PUC is below Rs. 10 Crore.
Therefore, answer to your question is with reference to Sec 2(94). Pls see the definiton of Whole-time director which is reproduced below:-
"whole time director includes a director in the whole-time employment of the company".
Sec 2(94) has clearly specified that whole time director should be in the whole-time employment of the comany.
In order to comply with the spirit of law, therefore we can conclude that a WTD should not accept any employment in other company .
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