Hello CA Clubbers,
Need your advice whether a person who has been appointed as a "Whole-Time Director" can work in a
1) Private Limited (or)
2) Public Limited
Company without salary?
Is there any Section in Companies Act, 1956 or any such instances has taken place? Please provide supporting informations.
With Regards
Shankar BA(Hons)
Corporate Administrator
A whole time Director can be appointed as non Executive Director of Public as well as Private Company, it means he is only providing some of his valuable time to the Company he is not involved in Company full time . Non Executive Director can receive sitting fees for the Board Metting he attended.
You can appoint a Whole Time Director of one Company as Non Executive Director in another Company (Public or Private)
| Originally posted by : Smriti Dhawan | ||
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A whole time Director can be appointed as non Executive Director of Public as well as Private Company, it means he is only providing some of his valuable time to the Company he is not involved in Company full time . Non Executive Director can receive sitting fees for the Board Metting he attended. You can appoint a Whole Time Director of one Company as Non Executive Director in another Company (Public or Private) |
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By passing a Resolution the Directors may Forego the Salary, considering the Financial Position of the Company. But the Director cannot work without Salary for an indefinite period as this seems impracticable.
A whole time director is the employee of the company. And a person cannot be in a full time employment in more than one Company. It is a general rule that a Whole Time Employee cannot be a whole time employee of any other place whether he may get salary or not.
Therefore, a WTD cannot be a WTD in any other company, whether he would get salary or not.
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