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Schedule xiii - unlisted public limited companies

Others 604 views 1 replies

A person is aa whole-time director in an unlisted public limited company. Now, he wants to be appointed as MD in another private company which is subsidiary to the afore mentioned public company. Can he do so ??

Can he draw remuneration exceeding Rs. 48 lakhs p.a. from both the Companies?? In view of the notification GSR 70(E) dated 08th February 2011, no CG approval is necessary for unlisted public companies to pay remuneration to exceeding Rs. 48 lakhs. 

So, can he receive remuneration from both the comanies without any maximum limit and without CG aproval??

Both the companies are having inadequate profits to pay hte remuneration.

Pls comment.

 

 

Replies (1)

No person can be appointed as WTD in one company and MD in another Company. No person can be in full time employment in more than 1 company.

 

However, Companies act provides that a person can be Managing Director in 2 companies.

 

In such situation he can be appointed as MD in both the Companies but cannot act as WTD in one and MD in another company.

 

He may choose one and continue other as non executive director.


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