APPOINTMENT OF DIRECTORS

Save Share

This query is : Resolved

Priyadharshini (Querist)

19 December 2009 Helo sir,

I need some clarification regarding appointment of directors in a private company..

1. can we appoint a director as a executive director (whole time director) for more than one company?
2. Whether a director can draw salary from more than one company?
3. Where we the find the exact meaning of Whole time, executive, non executive director in the company's Act..

I just gone through the provisions under companies act.. but i culdnt get a clear and eact answers for my questions... can anyone plz help me...

if it s mentiond in the section plz quote the section no.......

Ankur Garg

Ankur Garg (Expert)

19 December 2009 1. No

2. Yes

3. Compant act is silent as far as definition is concerned.

Executive dir means a director who is drawing salary from the company or holding the designation of WTD or MD.

Regards

Regards

Message likes : 1 times

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

19 December 2009 Little more reference :-
As per the explanation under section 269 of the Act, a whole-time director includes a director in the whole-time employment of the company. In other words, a director who devotes his whole time to the affairs of a company is called a whole-time director of the company. A whole-time director of a company cannot accept the position of a whole-time director in other companies, though he may accept office of non-whole-time director in other companies subject to the limits imposed by section 275 read with sections 277 and 278.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now