Dear Ankur / Nitin,
I fully agree with you that a Whole Time Director is in the whole time employment of the company and hence he cannot be appointed an employee in another company.
However as regards MD, the Act defines MD as a Director entrusted with substantial powers of the company. Nowhere he is mentioned as a whole time employee. The very fact that Section 316 of the Companies Act permits him to be appointed MD of one another Company goes to confirm that he is not in the whole time employment of the Company. Hence I feel there is no restriction in MD of one company being appointed as whole time employee of another company.
ED is nowhere defined in the Companies Act. ED is the person entrusted with executive (decision making and execution) powers. We even find persons designated as ED without actually being a Director in the Board. If the executive powers are entrusted to a part time director, such director can even be an ED. Hence I hold the view that ED need not necessairly be a whole time employee of the company.
Experts in the forum, please come out with your views.
Regards,
Jayashree S Iyer