APPOINTMENT OF WHOLE TIME DIRECTOR

This query is : Open

Prashant Bajaj (Querist)
Follow

16 June 2010 As per some of study done by me I have a view that an Individual cannot be appointed as a whole-time director of two company at a same time. And in our case MR P is already a WTD in two Company ie., A LTD & B PVT LTD and know Further, it is propose to Appoint MR.R as WTD in B PVT LTD who is already a WTD in A LTD. I have a doubt that we are not in a lawful compliance of Companies Act, 1956 relating to appointment of MR R as WTD in B PVT LTD. FURTHER A LTD & B PVT LTD as holding subsidiary relation. u can also view point (d) of schedule XIII PART I.
PLS REPLY

M Prabhakar Menon

M Prabhakar Menon (Expert)
Follow

17 June 2010 A person can be a WTD in more than one public limited company with the permission of CLB. There is no such restriction for Pvt Ltd Companies.According to u Mr B is already a WTD in B LTD find out since when and pl c the Co Sec and Auditors' Report filed with ROC for those years on this issue.

Message likes : 1 times

Prashant Bajaj

Prashant Bajaj (Querist)
Follow

17 June 2010 IS EVEN THERE IS NO RESTRICTION ON APPOINTMENT OF PERSON AS WTD IN PRIVATE LIMITED WHICH IS A SUBSIDIARY OF LISTED PUBLIC CO.AND THE SAME PERSON IS ALREADY WTD IN THAT HOLDING LISTED PUBLIC CO.

Prashant Bajaj

Prashant Bajaj (Querist)
Follow

17 June 2010 PRABHAKAR SIR CAN U TELL UNDER WHAT PROVISION WE MAY TAKE APPROVAL OF CLB. AS PER UR REQUIREMENT THE CO. HAD APPOINT THE MR R AS WTD IN YEAR 2005 AND ALSO AUDITOR REPORT OF THAT YEAR DOES NOT CONTAIN ANY QUALIFICATION FOR THE SAME. PL. CLARIFY THIS.

Ankur Garg

Ankur Garg (Expert)
Follow

18 June 2010 Never heard regarding CLB approval for the appointment of WTD in more than one company or Two company.

Technically a person can be appointed as WTD only in one company at a time.

However as there is no provision/restriction in law regarding this so you may find few instances where a person is working as WTD in more than 1 company.

Prashant Bajaj

Prashant Bajaj (Querist)
Follow

18 June 2010 ya ankur even i have never heard CLB Requirement.can u pl. tell me any future consequences if a person is appointed as such. even i have seen such appointment in big listed co. but logically this is not correct na?? how can an wtd in two co....

Prashant Bajaj

Prashant Bajaj (Querist)
Follow

18 June 2010 need more clarification pl. can any one

Prashant Bajaj

Prashant Bajaj (Querist)
Follow

18 June 2010 need more clarification pl. can any one

Ankur Garg

Ankur Garg (Expert)
Follow

21 June 2010 RoC may object later on. We have to maintain good practice as authority may ask you questions any time and things may also change drastically any time. So why to take risk?

Message likes : 1 times

Prashant Bajaj

Prashant Bajaj (Querist)
Follow

22 June 2010 thanks

Ankur Garg

Ankur Garg (Expert)
Follow

22 June 2010 Always welcome ji...

Prashant Bajaj

Prashant Bajaj (Querist)
Follow

24 June 2010 the query is open

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