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Non - Executive Director
Dear All,
‘X’ is an employee of listed Company since 2005 then he is appointed as a non- executive director of that Company from 20th August 2007. Furthermore, he is getting salary from 2005 in the capacity of an employee and also getting sitting fees after appointment of non –executive Director from the Company.
In this case, whether the Sections 309 or 314 are violated or not. If we are violating that sections what are the legal consequences arising and how to resolve the problem.
Whether Company needs to get approval from Central Government.
Whether the salary is getting by a non-executive director in the capacity of an employee shall be deemed a whole time director.
Replies (1)
Hello Sir,
First check the applicability of explanation to section 269 as per the interpretation of which if you appoint a whole time employee as a director then this would be considered as an appointment of WTD and compliance of section 269 is mandatory. There is also a DCA clarification to this effect.
Please revert if there is any doubt.
Regards
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