Director designation (Kind Attn: Mr. S.Srinivasaraghavan)

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Anil (Querist)
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16 July 2008 Dear Sir,

I am cutting and pasting the query of a caclub member and your reply to that.After reading your reply the member asked some other question. Unknowingly he seemed to have closed the query. I have also inculded his next query.

Since I have the same doubt I request you to please answer it.

Experts Home > Corporate Law > private company
author : Kumar
Posted On : 7/16/2008 11:24:05 AM
Dear Members,
Please advice/confirm.How far it is permissible under companies act,if the company bestowed the tile of director to its employees such as director(finance),director(human resource) etc.Please also clarify the exact position under Comapnies Act whether such practise is permissible.

Regards,
Kumar

Expert : S.Srinivasaraghavan
Posted On : 7/16/2008 11:31:02 AM
The companies Act does not contain specifically any provision to ban such designations.

author : Kumar
Posted On : 7/16/2008 11:41:56 AM
Dear Mr.Srinivasraghavan,

Thanks for your reply.But there is one such departmental clarification by Departemnt of Company Affairs letter no. 2/82 dated 20.1.83 which forbids such practise by corporates.Please confirm whether such departemntal clarification is relevant in present time.

Regards,

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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18 July 2008 This circular can at best be treated as advisory nature, can not be binding in view of non-availability of statutory force.

Only thing is the designation, director, has to be qualified by words like Finance director, Administrative director and so on, not merely as director.

Anil

Anil (Querist)
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22 July 2008 Thank you sir.

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