Appointment of independent director in an unlisted public co
This query is : Resolved
23 October 2016
During probation a manager of a company has been appointed as Independent Director (Non- executive) in the board just after joining the company & registered with RoC by filing form 32. Now, as per the provision of CA 2013, no body can be appointed as an Independent Director (NED), if he/she been employed in the company within last 2 financial year. Please clarify the following
(1) Whether his/her appointment will be treated as cancelled as he/she is not eligible of appointment of Independent Director per the provision of CA 2013 ?
OR
(2) He/She will be treated as Whole Time Director where as in form 32 clearly shows him/her as Independent Director.
(1) Whether his/her appointment will be treated as cancelled as he/she is not eligible of appointment of Independent Director per the provision of CA 2013 ?
OR
(2) He/She will be treated as Whole Time Director where as in form 32 clearly shows him/her as Independent Director.
24 October 2016
There are 2 schools of thoughts.
if the Independent Director are appointed prior to April 1 , 2014 may complete and continue their remaining tenure under the provisions of the Companies Act 1956 or they should demit the office and reappointed as per the new act. if the existing independent Director is appointed under the new act , he shall hold the office as per section 149(10) &(11) of the companies Act 2013, read with schedule IV of the act and it should comply this provisions within 1 year from 1 April 2014( i.e. within 1 year from the date of commencement of the act)
in other words such independent Director may be appointed fresh under companies Act 2013.
And he cannot be appointed as whole time Director because as per section 149(6), Independent Director means the Director other than managing Director or whole Time Director
if the Independent Director are appointed prior to April 1 , 2014 may complete and continue their remaining tenure under the provisions of the Companies Act 1956 or they should demit the office and reappointed as per the new act. if the existing independent Director is appointed under the new act , he shall hold the office as per section 149(10) &(11) of the companies Act 2013, read with schedule IV of the act and it should comply this provisions within 1 year from 1 April 2014( i.e. within 1 year from the date of commencement of the act)
in other words such independent Director may be appointed fresh under companies Act 2013.
And he cannot be appointed as whole time Director because as per section 149(6), Independent Director means the Director other than managing Director or whole Time Director
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
- CAPITAL GAIN BASE ON NOTIFICATION
- NRI starting business in India
- ITDS U/S.194T of Firm
- Unregistered suppliers utility
- Non-Compliance documents have not been submitted by the contractors debited
- EXPORT COMMERCIAL INVOICE HSN CODE
- Resigning a auditor from the company for misconduct
- Capital gain on sale and purchase of plot
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- FCRA 6 E- Intimation
- Taxable or Tax exempt
- How to pay remaining amount of TDS after due date?
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
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
