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Appointment of Whole Time Director in Private Company

28 April 2010

Hi friends

ABC is the private limited Company wishes to appoint Mr. XYZ as Whole Time Director who is not a director of the Company.

Can the company straight away appoint any person (not a director) as whole time director. please reply urgent

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7 Replies

(Guest)

Yes, the company can do so.

1 Like

Sarabjeet Kaur (CS) (196 Points)
Replied 29 April 2010

I think, A person must be a Director. You must appoint such person as Additional Director first and then appoint him as WTD.

other views solicited

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 29 April 2010

First you have to appoint him as additional director as per section-260. Then pass the next resolution to appoint him as WTD.

Further if you fail to regularise him as regular director then he will automatically cease to be a WTD.

So the agenda of your BM would be:

1. Appointment of Mr. X as Additional director.

2. Appointment of Mr. X as WTD.

Also check the link below:

Appointment of an Employee as a WT Director

Regards

(Guest)

You can directly appoint that person as WTD.

No need for the first appointment of Director and then WTD.

If u see the Form 32, it will ask for the No. of directors for the form is being filled

in Ur case directly is only 1,

then after when u reach the designation TAB, it will allow u to selcet only 1 option whether WTD or other.

And if u go through the above mentioned replies in the forum, then u have to file Form 32 twice for the same person for the resolution passed in the same meeting, Which sounds stupid.

So, Make the aperson WTD directly

and Moreover WTD is also a kind of Director, there is no complusion that only director can be appointed as WTD/MD.

-------------------------------------------

If you need further clarification than contact me

CS Ankur Shah (Practicing Company Secretary)

“Guru Gautam” Bungalow, Inside Parshwa Tower,

Nr. Shyamal Cross Road, 132ft. Ring Road,

Satellite, Ahmedabad – 15

Contact: + 91-9427633901

E-mail: ankur @ csankur.com, ankurjewel @ gmail.com

Blog: csankur.blogspot.com

Website: www.csankur.com

manoj kumar (cs) (130 Points)
Replied 11 July 2012

i am in the same situation.

one of our client private company wants to appoint a person as whole time director. i am in the opion that as the provisions of the companies act with respect ot the WTD is not applicable to the private company unless restricted by the Articles of the company it is free to appoint any person straightaway as WTD in the EGM dule convened and held.

if anyone has any other opinion pls share.

manoj