Appointment of CS as Director

This query is : Resolved

Arun Mehta (Querist)
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23 August 2010 A private company having full time secretary wants to appoint the secretary as Director of the company too. Can the company do so ? If he is appointed as Director what will be situation with respect to remuneration from the company in which he is a director and secretary ?

Ankur Garg

Ankur Garg (Expert)
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25 August 2010 As per section 383A (1) Every company having such paid-up share capital as may be prescribed shall have a whole-time secretary and where the Board of directors of any such company comprises only two directors, neither of them shall be the secretary of the company.

So as per the interpretation of above sub section if there are only 2 directors in the board none of them shall act as a CS.

However in case of a larger BOD a CS can be appointed as a director for sure.

Wait for other expert opinions.

Thanks

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