Whole Time Director in Two Public Limited Companies

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Ashish Gaggar

Ashish Gaggar (Querist)

15 September 2009 Can a person be Whole Time Director in Two Public Limited Companies.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

15 September 2009 The companies act,1956 does not define a 'whole time director. However, explantion to section 269 states that the expression 'whole time director' includes a director in the whole time employment of the company. By virtue of the whole time employment, a whole time director cannot act as such in more than one company.

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)

15 September 2009 No

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

16 September 2009 completely No

Ankur Garg

Ankur Garg (Expert)

16 September 2009 Agree to a certain extent.

But my answer is a bit different. If both the companies are group companies having regd./corporate office in one premises then there is no issue at all.

As law is silent regarding WTD and explanation of 269 is not mandatory in nature (just an explanation) a person may be a WTD in 2 companies.

Regards

Ankur Garg

Ankur Garg (Expert)

16 September 2009 As far as ROC or E-filing of 32 is concerned no prob at all. In the ROC system a persom can be reflected as WTD of 2 companies.

Regards

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