If in a public limited company with a paid up capital of Rs. 50 Lacs an employee become a director, how shall he be treated? Simply an executive director or WTD?
Menu
Employee becoming a director
Replies (2)
In my opinion , He should be Executive Director , for WTD he should possess that requisite quality and continuing relationship with company as designated employee,
If such employee is departmental head or something , after becoming a director he can be only WTD,
Another thing for becoming executive director you may consider application of place of profit.
please provide any counter views on this.
Thank you @ Rohan K for your response. I am not totally aware about the situation what @ Tulika has asked. But please refer me the section where WTD requires quality. I have studied about quality required for Independent director 149(6) but not about WTD.
Further under section 177 there requires certain qualities of director to be chairman of audit committee.
In my view if s/he fulfils the certain critarea mentioned in AOA of the company (specially regarding share capital) then he can be director of the company.
He can't be Independent director as he is disqualified under 149 (6)(e) (ii).
He should hold DIN as mentioned under section 152.
Please provide further views for this case.
regards
Dipendra Prasad Poudel
Recent Threads
- Which Website is Best For PL-200 Exam?
- Excess Payment on RCM
- AOC4 auto population of previous year data
- Exports against INR PO payable by Domestic Company
- Which websites are best for government exam prepar
- TDS on maturity payment of LIC of india
- ITR2 Gold ETF short and long term
- Query under faceless assessment
- Purchase of business
- Refund of ITC for advance paid to overseas supplie
Related Threads
CAclubindia
