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CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Posted on 20 July 2011

Nominee Director appointed on behalf of Public Financial Institutions, Financial Institutions and banks on the board of companies should also be treated “officer in default” or a “director(s)” or “persons” as provided in Section 5 of the Companies Act, 1956. Accordingly, nominee director also comes under the ambit of officer in default and the they are also liable for compliance of various provisions of the Act.

Attached File : 112299 774460 circular 47 2011 14july2011 nominee director is also officer in default.pdf downloaded: 156 times

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CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Posted on 20 July 2011

Waiver of approval of Central Government for payment of remuneration to professional managerial person by companies having no profits or inadequate profits

No approval of Central Government will be required by the listed companies and their subsidiary companies, which are not having profits or having inadequate profits for payment of remunerations exceeding Rs. 4 lakh p.m., if the managerial person:-

(a) is not having any direct or indirect interest in the capital of the company or its holding company or through any other statutory structures at any time during last two years before or on the date of appointment and

(b) is having a graduate level qualification with expert and specialized knowledge in the field of his profession.