Ours is private limited company having 99.99% forign investment. All the directors are british citizens. Now our auditor says that it is mandatory to appoint a indiation national as director from this financial year. Plase clarify.
Ours is private limited company having 99.99% forign investment. All the directors are british citizens. Now our auditor says that it is mandatory to appoint a indiation national as director from this financial year. Plase clarify.
Dear Mani,
Your auditor might have referred to Sec.149(3) of the Companies Act, 2013. As per Sec.149(3), Every company shall have at least one director who has stayed in India for a total period of not less than one hundred and eighty-two days in the previous calendar year.
Sec.255 of the Companies Act, 1956 which deals with appointment of directors is silent on the nationality of the directors.
Since Sec 149 is yet to be notified by MCA, there is no issue . But it is expected that remaining sections of the Companies Act, 2013 will be effective from April1, 2014 onwards. So , it is better to appoint a resident director.
Regards,
ARJUN RAJAGOPAL
CAclubindia
