Appointment of Directors
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 May 2010
In a private limited company, there are currently 3 directors. One is the Promoter Director, second is his wife and the third is an employee who has been made a WTD. The Promoter Director has neither been appointed as the WTD or the MD.
This company has not got converted into a Public Limited company and has a share capital of over Rs 5 crores.
For the purposes of complying with Section 292A, can these 3 Directors also constitute the Audit Committee? For a non-listed company there appear to be no restrictions to do the needful, since the requirement of 2/3rds being Non-Executive Director is fulfilled with the Promoter Director and his wife complying with these provisions and the other WTD being the Executive Director.
If this is not right, what do you suggest to ensure compliance?
This company has not got converted into a Public Limited company and has a share capital of over Rs 5 crores.
For the purposes of complying with Section 292A, can these 3 Directors also constitute the Audit Committee? For a non-listed company there appear to be no restrictions to do the needful, since the requirement of 2/3rds being Non-Executive Director is fulfilled with the Promoter Director and his wife complying with these provisions and the other WTD being the Executive Director.
If this is not right, what do you suggest to ensure compliance?
25 May 2010
You are right. The Audit Committee can be formed accordingly.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- Price inclusive or exclusive of GST while made entry in P& L Account
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- Non filing of I T Returns
- UDIN ISSUE
- Change Of Karta In Case of Death
- SALARY CAN BE CAPITALIZE
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on Fixed Assets purchased
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
