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tenure of WTD

Mayuri Lal (officer CS) (748 Points)

24 September 2010

Dear Members,

Wat is the tenure of Whole Time Director in any company...

please advice me.

Regards,

CS Mayuri Lal

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10 Replies

Ajay Mishra (Company Secretary) (74332 Points)
Replied 24 September 2010

Dear Friend,

As the words Whole time Director itself says that such director will appoint for whole time. In the Companires Act, 1956 there is no specific period given for the WTD as given for MD.

Regards

Mayuri Lal (officer CS) (748 Points)
Replied 24 September 2010

agreeed...

thank uuu for the help

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 24 September 2010

If whole time director is appointed under schedule XIII then the tenure would be as per schedule XIII i.e. 3 or 5 years and accordingly he may be reappointed for such terms.

Mayuri Lal (officer CS) (748 Points)
Replied 24 September 2010

oh ok..

thank uu

Ajay Mishra (Company Secretary) (74332 Points)
Replied 24 September 2010

Part I of Schedule XIII of the Companies Act, 1956 deal with appointment of WTD which not defined the period for which a WTD will appoint, it generaly says the condition which will be complied for appointment.

Regards

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 24 September 2010

But part II of Schedule XIII specified the limits of tenure. Therefore, according to the remuneration of the WTD, the tenure would also to be decided as per Schedule XIII.

However, in case the appointment does not fall in part II, the WTD may be appointed for whole time as Mr. Ajay said above.

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 24 September 2010

Kindly appreciate Whole time word has nothing to do with life time appointment. These words denotes the amount of time one has to devote for a company.

As law is silent regarding tenure So keeping in view the industry norms i would advise you to appoint WTD for a period of 5 years. Further if the appointment is in accordance with Schedule XIII then observe the advise of Ankur Srivastave sir...

Thanks