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.
Jayashree S Iyer
(Expert)
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.
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- MSME disclosure and disallowance
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
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
