Executive director

Dear Members,

 

Please suggest on the following query:

 

Mr. A is an WTD of a public limited Company. Later he was appointed as an Executive Director (designated as "Director") in a Private Company and also drawing remuneration in that capacity. Is violation of any provision of the Companies Act, 1956 involved therein? Please provide your valuable views in this regard.

 

Thanks

Replies (3)

No, there is no violation under Companies Act., 1956.

 

A whole time director of a company can hold a office of executive director in other company. (Kindly note that he cant hold a office of Whole time director in other company).

 

In case he is getting remuneration from both the companies, the amount of remuneration from both the companies should not exceed the higher maximum limit of remuneration from any of the two Companies.

There is no violation of any provision of the act.

Thanks Sneha!!!! But as far as my observation is concerned the limit on remuneration from both the companies becomes applicable only if such director is a managerial person in both the companies. I think in this case he will not be considered as a managerial person of a pvt ltd. co. So the limit will not apply.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details