Appointment of cfo
CS Ayushi shah ( CS) (451 Points)
05 February 2016
CAN ADDITIONAL DIRECTOR BE APPOINTED AS CFO?
CS Ayushi shah ( CS) (451 Points)
05 February 2016
Yashwant Patel
(Working with CA firm)
(117 Points)
Replied 05 February 2016
Companies act 2013 didn't impose any kind of restriction. So subject to the restriction of section 203, additional director can be appointed as CFO
CS Ayushi shah
( CS)
(451 Points)
Replied 05 February 2016
So as per me,he will be designated as CFO also and as Additional Director also na?
sunil
(dfd)
(92 Points)
Replied 05 February 2016
Hi Ayushi
The CFO will be in the whole time employment of the Company, once you appoint him as an Additional director, he will become WTD of the company , so as per my understanding, it is not allowed
sunil
(dfd)
(92 Points)
Replied 05 February 2016
Hi
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Yashwant Patel
(Working with CA firm)
(117 Points)
Replied 06 February 2016
Dear Sunil
As per section 203 (3) "A whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time:
Provided that nothing contained in this sub-section shall disentitle a key managerial personnel from being a director of any company with the permission of the Board:"
Companies act impose the restriction on holding the office in other company and not in the same company.
Also a whole time KMP can be an additional director of any company (including the Company in which he is a KMP) with the permision of board
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