M.D/manager/Whole Time Director

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Archana (Querist)
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31 March 2010 Can a whole time director of a ltd. co. be a manager or managing director of another co. which is their group company itself.......

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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31 March 2010 YES HE CAN BE APPOINTED AS MD AS NO RESTRICTION IMPOSED U/S 267.

SEC 267. Certain persons not to be appointed managing directors.

No company shall, after the commencement of this Act, appoint or employ, or continue the appointment or employment of, any person as its managing or whole-time director who-

(a) is an undischarged insolvent, or has at any time been adjudged an insolvent;

(b) suspends, or has at any time suspended, payment to his creditors, or makes, or has at any time made, a composition with them; or

(c) is, or has at any time been, convicted by a Court of an offence involving moral turpitude.

REGARDS

Ankur Garg

Ankur Garg (Expert)
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31 March 2010 No. I do not think so.

I would not advise you to appoint WTD as MD or Manager of other company keeping in view his full time employment as WTD.

Regards

Archana

Archana (Querist)
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31 March 2010 yes ankur m of d same view as u......as WTD is in whole time employment of one co. so how can he be a M.D/MANAGER of other co. who's duty is to look after day to day activities....

Also, for calculating remuneration of Director/WTD/Manager...suppose v hve enuf profits n wanna give more to directors as remuneration exceeding the limits of 5% n 10%....so in order to escape frm central govt. procedure cn i give it as commission to them......on wht basis commission is calculated?????

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