Appointment of MD as CEO of its subsidairy company?

[Kiran T]

Dear All

 

Need your valuable suggestion for below query.

 

 

Whether MD of holding company be appointed as CEO or president of its wholly owned subsidary?

 

 

Regards

Kiran.T

[CS.Omkar]

Dear Mr. Kiran,

 

I shall presume that MD is going to be a Non-Executive Director in wholly owned subsidiary. Please clarify.

 

If he is NED, I am not finding any legal bar in appointing him as President/Chairman, whatever designation assigned to it.

 

Contrary views, if any, solicited

 

Regards...Omkar

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[Kiran T]

Dear Mr. Omkar

 

Thanks for your views.

 

To give more clarity on the question........

 

The Holding company is a pvt company which is a subsidiary of public company. The said MD of holding company will not hold directorship in  the subsidiary but will be appointed as CEO or president with a REMUNERATION. He will not be paid any remuneration from the holding company.

 

Regards

Kiran.T

[Vivek Aggarwal]

Dear Kiran

Yes, the MD of holding Company can be appointed CEO of the subsidiary company provided the salary payable to him does not exceed the higher limit as per Schedule XIII.

Regards
CS Vivek AGGARWAL

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From: Kiran T <cskir...@gmail.com>
To: csmy...@googlegroups.com
Sent: Fri, 10 September, 2010 5:15:06 PM
Subject: [CSMysore] Appointment of MD as CEO of its subsidairy company?

[Kiran T]

Dear Vivek

 

Thanks for your reply!!

 

To continue with the same situation.....

 

If MD is appointed as CEO of the subsidiary company, whether Sec 314 is attracted (Place of profit)?

 

According to my understanding of this Proviso, MD of holding company can be 

appointed as CEO (would be treated as place of profit) of its subsidiary, provided the remuneration received from subisidiary company is paid over to its holding company.

 

 

 

Regards

Kiran.T

[Vivek Aggarwal]

Dear Kiran

I would like to clarify your understanding that if the remuneration received from Subsidiary company is paid over to the holding company, the position is not treated as office of profit.

Regards
CS Vivek Aggarwal

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From: Kiran T <cskir...@gmail.com>
To: csmy...@googlegroups.com

Sent: Sat, 11 September, 2010 11:30:37 PM
Subject: Re: [CSMysore] Appointment of MD as CEO of its subsidairy company?

[Kiran T]

Dear Vivek

Thank you!


Regards

Kiran.T

[yoganand l]

yes. he can be appointed.

 

 

regards,

yogan.