One director can involved with more than on company
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 September 2011
Hi All,
One director can involved with more than one organization.If yes than what is the procedure to involved in it. As already having director for one Pvt. Ltd Firm.
One director can involved with more than one organization.If yes than what is the procedure to involved in it. As already having director for one Pvt. Ltd Firm.
21 September 2011
Yes. Section 45 of the Companies (Amendment)(No. 2) Act 1999, states that a person shall not be a director of more than 25 companies. However there are some exceptions to this rule, for example groups of companies are treated as one company for the purposes of this section.
Section 269 of the Companies Act provides for appointment of Whole Time Director. Section 316 of the Companies act prohibits a person to be Managing or Whole Time Director in more than one company. If he desires to be a Managing Director in another Company then the company should pass a special resolution in the board meeting for such appointment and all directors present in the meeting should provide their consent.
At times Central Government by order permint any person to be appointed as Managing Director in more than 2 companies if they are satisfied and it is necessary for the companies proper working to have a common managing director (ie) companies in the same group can have one managing director.
Section 269 of the Companies Act provides for appointment of Whole Time Director. Section 316 of the Companies act prohibits a person to be Managing or Whole Time Director in more than one company. If he desires to be a Managing Director in another Company then the company should pass a special resolution in the board meeting for such appointment and all directors present in the meeting should provide their consent.
At times Central Government by order permint any person to be appointed as Managing Director in more than 2 companies if they are satisfied and it is necessary for the companies proper working to have a common managing director (ie) companies in the same group can have one managing director.
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