Following the provisions of 196 for md in private company
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 November 2015
Dear Experts,
As per the Companies Act, 2013, there is no requirement of appointing CFO, or MD or WTD in private Cos.
Still, many companies do so, and also file the appointment in the ROC, and follow procedure under Section 196 (like term of appointment 5 years, approval by members at subsequent general meeting etc.)
Why is this done?
As per the Companies Act, 2013, there is no requirement of appointing CFO, or MD or WTD in private Cos.
Still, many companies do so, and also file the appointment in the ROC, and follow procedure under Section 196 (like term of appointment 5 years, approval by members at subsequent general meeting etc.)
Why is this done?
Pratik Shah
(Expert)
23 November 2015
If you see, most of the such cases are for Whole-time Directors.
The reason is, if a Director is receiving salary from a company, then he should be treated as 'WTD', by virtue of receiving salary.
Section 196 is only for MD and WTD.
The reason is, if a Director is receiving salary from a company, then he should be treated as 'WTD', by virtue of receiving salary.
Section 196 is only for MD and WTD.
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