Dear Experts,
We have just formed a new Pvt Ltd, wherein Mr. VKK and his wife SVK and myself are directors.
Mr. VKK has developed a water harvesting technique for which he recd the Indian Patent . He will be giving the rights of this patented technique to this KRwH Pvt Ltd and the Pvt Co will be paying Royalty to Mr. VKK.
However, the consultant say the above transaction between KRwh Pvt Ltd and Director-Mr, VKK will amount to Director being Interested and thus entail lots of compliances and lots of objectionalbe query by various govt depts- Co Law, Income Tax, etc
Hence, the consultant advices that Mr VKK, although he can be major shareholder, should not be the director and can be a CEO or President of Pvt Ltd Co and under power of attorney / authority of the Pvt Ltd , he can sign, deal, give presentation, enter into contracts on behalf of the Company.
Dear Experts, kindly give your expert opinion and advice.
Thanks in advance.
regards,
Sanjay Agarwal=93729-56550
Aurangabad
CAclubindia
