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DCA Clarification

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Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2011 HI All

Please note that i have appointed an employee (Professional) of the company as a non executive director of the company. Wanted to confirm whether it can be done so. Also wanted to have the clarification given by the DCA 2/19/63-PR dated 29.06.1964 under section 269 for reference.

Kindly help

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 March 2011 The referred clarification reads as follows:-
A whole time employee of a company also appointed as a director of the company is in the position of a whole time director. The view is equally applicable in the case of an alternate director. Accordingly, the appointment of an employee as an alternate director will be governed by the provisions of sections 314,269,309 and 198 of the Companies Act,1956.

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2011 Sir wanted to know whether the act carried out is correct or incorrect

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