Director
This query is : Resolved
06 September 2012
A private company hired an experienced person for using his experience in the operations of company and wants to give him the designation "Director-Operations". this designation will be printed on his visiting card and on every future correspondence he would made on behalf of company.
Can company do so without legal formalities of Companies Act?
Can company do so without legal formalities of Companies Act?
Guest
Guest
(Expert)
06 September 2012
Yes, company can do so. There are no hassles. Go ahead without worry. There are no formalities in companies act.
06 September 2012
Hi,
I beg to differ with Ms. Neha. If you disign somebody as Director, without actually making him a member of the board, then wrong impression may be created in the mind of others and may treat the same person as a member of the Board.
Department of Company Affairs Circular No.2/1982(1/1/82-CL-V;23/44/79-CL-II) dated 20th January, 1993 regarding appointment of persons styled as special directors, executive directors, etc.was mentioned that Instances have come to the notice of the Department where companies have designated executives who are not members of the Board as special director, director administration, etc. Such designations give an impression to public at large and those dealing with these companies and the executives that they are full-fledged directors entitled to act as such on behalf of the companies. If in fact these executives are not directors on the board of the companies, it will be patently wrong on the part of companies to designate them as directors.
Thanks,
I beg to differ with Ms. Neha. If you disign somebody as Director, without actually making him a member of the board, then wrong impression may be created in the mind of others and may treat the same person as a member of the Board.
Department of Company Affairs Circular No.2/1982(1/1/82-CL-V;23/44/79-CL-II) dated 20th January, 1993 regarding appointment of persons styled as special directors, executive directors, etc.was mentioned that Instances have come to the notice of the Department where companies have designated executives who are not members of the Board as special director, director administration, etc. Such designations give an impression to public at large and those dealing with these companies and the executives that they are full-fledged directors entitled to act as such on behalf of the companies. If in fact these executives are not directors on the board of the companies, it will be patently wrong on the part of companies to designate them as directors.
Thanks,
Message likes :
1 times
Guest
Guest
(Expert)
06 September 2012
Agree with Mr. Siddharthaji.
Obviously form 32 will be filed for appointing as director but then what I am emphasizing is there are no formalities for using the designation as director- operations.
With Best regards
Neha
Obviously form 32 will be filed for appointing as director but then what I am emphasizing is there are no formalities for using the designation as director- operations.
With Best regards
Neha
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
- Difference between Date of Payment and Date of Deduction?
- ITDS U/S.194T of Firm
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Non-Compliance documents have not been submitted by the contractors debited
- EXPORT COMMERCIAL INVOICE HSN CODE
- GST Rate for Catering Services
- FCRA 6 E- Intimation
- NRI starting business in India
- The TDS balance for March 26 shows a mismatch between the books and the portal; what should be done
- Filling ITR - U
- Form 140 tds
- 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
