Can a private limited company elevate a shareholder, who is also a whole-time director reporting to the MD, to the position of Executive Vice Chairman of the company and make the MD report to him? If so, what is the procedure? It is pertinent to mention here that the MD does not hold any share in the company and is a salaried employee under contract.
The provisions pertaining to appointment of MD / WTD and their remuneration are not applicable to private limited companies. Similarly appointment of independent Chairman also does not apply to them. Hence they are free to have management structure as per their choice.
Other Experts in the forum, please let us have your opinion too.
Agree with Jayshree Mam...
They can have structure as they like...
Regards
Jaideep Pandya
Hi
In asked query, there is no question raised for remuneration.
In Pvt Company, management is free to appoint someone as Vice Chairman even not holding shares.
Regards
Sudhir
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