PVT LTD

Pvt ltd 1487 views 4 replies

Kumar

Legal Consultant

358 Points Posted on 15 July 2008

Dear Member,

Please amplify is it permissible under Companies Act to disignate as director without being appointed as director under companies act.

eg now a days many MNC's practise such thing giving nomination as director technical,director logistic,director production etc but in actual sense under law they are not director as such.Whether such practise is permissible under law.

Regards,

Replies (4)

nitin rajpal

director

20 Points Posted on 15 July 2008

new user wanna log in

Mahesh Paryani

Chartered Accountant

365 Points Posted on 27 July 2008

Originally posted by :Kumar
"	Dear Member, Please amplify is it permissible under Companies Act to disignate as director without being appointed as director under companies act. eg now a days many MNC's practise such thing giving nomination as director technical,director logistic,director production etc but in actual sense under law they are not director as such.Whether such practise is permissible under law. Regards, RK	"

sir

if you consider company law

the company law does not define the term director

but a director is defined by its act or conduct or the role he has been given

so it depends on the facts they can be tearmed as director

but if they are termed as director they would be held responsible for all the acts of their related activity as a normal director is liable

correct me is i am wrong

regards

Sundari

Chartered Accountant

26 Points Posted on 15 September 2008

Dear all ,

Can the Pvt ltd company can accept the unsecured loans from Share holders or Directors or from some other company which is not share holder but same management

Lineesh James

Company Secretary

30 Points Posted on 16 September 2008

Originally posted by :Kumar

There is a circular issued by the Department of Company affairs restraining companies from using designations such as 'Executive Director' unless he is a member of the Board of Directors.