Director working for another organisation

Save Share

This query is : Resolved

sri.student (Querist)

03 February 2015 can a person who is working as an employee in an organisation (not being a company) become director of a company and receive amount from the company as salary/remuneration/sitting fees? would there be any legal hassels if the person who is a director of a company works as a full time employee in another organisation?

c.bakshi

c.bakshi (Expert)

04 February 2015 That person can only be a non executive director and shall only be claim reimbursement of the expenses incurred in good faith of the company and sitting fees as prescribed by BOD of the company

sri.student

sri.student (Querist)

04 February 2015 sir,

does it mean a director working for another organisation cannot claim directors remuneration/salary?

c.bakshi

c.bakshi (Expert)

05 February 2015 if the company appoints him/her as whole time director then he can get salary and all other reimbursement from this company and can be independent director in some other companies where he/she can only be entitled to sittings fees and other reimbursment of expenses incurred on behalf of the company

c.bakshi

c.bakshi (Expert)

05 February 2015 when you appoint any person as a director then you have to specify whether he/she is executive or non executive. is he/she is executive then can only be entitled for remuneration

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