Executive Directors
This query is : Resolved
11 April 2011
Hi all
A public company has appointed Mr. A as Exective Director-works & Operations but the co. dont wish to take him on the Board and does not file Form 32.
Is it possible, if not reasons therefore.
A public company has appointed Mr. A as Exective Director-works & Operations but the co. dont wish to take him on the Board and does not file Form 32.
Is it possible, if not reasons therefore.
12 April 2011
Many companies designate their executives as ED, Director, Sr. Director, etc. without actually inducting them in the Board.
Such practices, no doubt, create confusion and are not healthy. I have even come accross a MCA circular restricting usage of such designation for the executives who are not on Board.
However, there is no statutory provision and hence the practice is continuing.
A person to be a "Director" must be appointed by the Board by way of a Resolution and his appointment has to be approved by the members in General Meeting. Form 32 needs to be filed.
Just designating an executive as ED will not make him a member of the Board.
Such practices, no doubt, create confusion and are not healthy. I have even come accross a MCA circular restricting usage of such designation for the executives who are not on Board.
However, there is no statutory provision and hence the practice is continuing.
A person to be a "Director" must be appointed by the Board by way of a Resolution and his appointment has to be approved by the members in General Meeting. Form 32 needs to be filed.
Just designating an executive as ED will not make him a member of the Board.
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