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Whole time director

Pvt ltd 13849 views 17 replies

I have one query in this,

In case of Private Company, person is appointed as Director and not WTD.

Such person is getting remuneration from the company.

Will provisions of 196 apply of such director in case of private company?

Do we need to retire after 5 years and re-appoiont him further?

 

As per Schedule 5 of Companies Act 2013, A Whole Time Director shall draw the Managerial remuneration from either from one Company or both the Company but remuneration shall not exceed the higher maximum limit admissiable from any Company of which he is a managerial personel.

For Example : Mr. X , who is the director in ABC Co Ltd, an unlisted Company and also the Director in Company PQR LTD, an another Unlisted public Company. Mr X , draws Rupees 10 lakhs from Company A and Rupees 5 Lakhs from Company B. Hence total remuneration Mr X can avail from both Company shall not exceed 10 Lakhs.

Respected sir,

Very interesting issue. Definition describe as full time but there is no specific fine,penalty for the breach. What if one work as whole time director in more company? What action may be taken? Under which Provision? I give example that as per Hindu Marraige Act, polygmay is office. Though one marry more women, have childrens and live peacefully and maintaining all responsibilities.Law may punish him but in any case person can be part-time husband of any women? Or part time father of any child? I request to opine

 


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