Section 269
This query is : Resolved
16 April 2012
Facts of the Case:
• Mr. A has been appointed as MD of ABC Ltd for a period of 5 years without drawing any remuneration.
• Mr. A is an employee of PQR Ltd.
• It is proposed to appoint Mr. A as Director of PQR Ltd.
• By virtue of provisions contained in Section 269 of the Companies Act, 1956 Mr. A shall be deemed to be Whole Time Director of PQR Ltd.
• Pursuant to his appointment as Whole Time Director of PQR Ltd, can Mr. A continue as MD of ABC Ltd.?
Regards
CS Udit Sharma
• Mr. A has been appointed as MD of ABC Ltd for a period of 5 years without drawing any remuneration.
• Mr. A is an employee of PQR Ltd.
• It is proposed to appoint Mr. A as Director of PQR Ltd.
• By virtue of provisions contained in Section 269 of the Companies Act, 1956 Mr. A shall be deemed to be Whole Time Director of PQR Ltd.
• Pursuant to his appointment as Whole Time Director of PQR Ltd, can Mr. A continue as MD of ABC Ltd.?
Regards
CS Udit Sharma
16 April 2012
Yes he can continue as MD of ABG Ltd as well.
Restriction is there only if he is appointed as MD or Manager of PQR Ltd.
As in your case he is getting appointed as WTD, normal procedure for appointment of WTD is to be followed.
Restriction is there only if he is appointed as MD or Manager of PQR Ltd.
As in your case he is getting appointed as WTD, normal procedure for appointment of WTD is to be followed.
17 April 2012
Dear Jagruti!
Thanks for ur reply.....but can u please elaborate ur answer citing some case laws or relevant provisions of the Companies Act, 1956?
Thanks for ur reply.....but can u please elaborate ur answer citing some case laws or relevant provisions of the Companies Act, 1956?
21 April 2012
In My opinion a person can't be appointed as a MD if he is WTD in another company.
Though the companies act does not expressly prohibit it.
The logic behind in my answer is that WTD is one who spends his whole time in the management of the company. MD also stands in the same position.
Though Act permits appointment of same person as MD of more than one company. About WTD, its is not expressly mentioned.
Though the companies act does not expressly prohibit it.
The logic behind in my answer is that WTD is one who spends his whole time in the management of the company. MD also stands in the same position.
Though Act permits appointment of same person as MD of more than one company. About WTD, its is not expressly mentioned.
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 of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Experts need help
- Management System (IMS)
- Foreign lottery ticket bought online from India: legality, tax and consequences
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Rental income gst and it purpose
- EPF FULL & FINAL RULES IN 2026
- Gift Received from nonblood relative
- 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
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
