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.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

RAGHUNATH KASIBHOTLA

CA Sunny Sharma

Raviraj ponkshe

adarsh chaturvedi

DEEPAK BHARGAVA

Subscribe Now

One director can involved with more than on company

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

GST CONSULTANT

Manager- Finance and Compliance

CA Final

GST CONSULTANCY

Accountant