Whole time Director in two private limited as well as director remuneratioin from both the company

[Kirti Tulsyan]

Dear All

Can a person become a whole time director in two private limited company  and can also  receive Director remuneration from both the company

 

Thanks & regards

CA. AJay Bajesaria

REPLY 1 

No. Third Proviso to Section 203 (3)permits only the appointment of an MD in two companies with the unanimous consent of the Board .
regards

kalidas

REPLY 2 

Generally Directors are used to take salary / remuneration from more than one Private companies. There is no designation as whole time director is given, just these are promoter, executive director. Whether this is possible. 

Thanks

 

CA R. A. JOSHI
AWATAR JOSHI & CO.
Chartered Accountants
Room # 16, 4th Floor,
23A, Netaji Subhas Road,
Kolkata - 700 001
Phone : (033)2230 0365 
                     4005 6512

REPLY 3

i do not think that this is allowed legally.Any remuneration to a director has to be paid only with Board authority.
regards
kalidas

REPLY 4

neither in co act 1956 nor in co act- 2013,
An individual can not hold the post of WTD in more than one co. be it pvt or public. 
However a co. can have more than one WTD in its Board

vishnu tulsyan

REPLY 5

one person can become whole time director only in one company

 

• G.R.GUPTA.

REPLY 6

No. Third Proviso to Section 203 (3)permits only the appointment of an MD in two companies with the unanimous consent of the Board .
regards
kalidas
 

REPLY 7

No a person can act as a whole time director of only one company and not more than one company. Hence he can draw remuneration from one company only.

CA Mukesh Bajaj

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Best Regards, 
Kirti Tulsyan
B.Com.,ACA,CS


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[Kirti Tulsyan]

NEW REPLY 1

Dear Ajay Ji,

No an individual can not be appointed as the Whole Time Director in two companies. As per the explanation under section 269 of the Act, a whole-time director includes a director in the whole-time employment of the company. In other words, a director who devotes his whole time to the affairs of a company is called a whole-time director of the company. A whole-time director of a company cannot accept the position of a whole-time director in other companies, though he may accept office of non-whole-time director in other companies subject to the limits imposed by section 275 read with sections 277 and 278.

So, an Individual can't be appointed as Whole Time Director in more than one companies, so he can't even withdraw any remuneration as WTD from more than one company. 

sanjit burman

NEW REPLY 2

please note that any payment beyond sitting fees to directors has to be with the approval of the board.As we are talking about a private company the provisions in the law with regard to payment of managerial remuneration do not apply to a private company.
When any payment is made to a director as remuneration over and above the sitting fees,it tantamounts to the director holding an office of profit u/s 314 of the old Act .this provision is covered under Section 188 of the new Act.please read the expression "Office or place of profit".
Both Section 314 and 188 apply to a private company.No payment of remuneration could be made under Section 314 without approval of the board/shareholder/Central govt depending upon the amount paid.
Similarly u/s 188 read with Rule 15 in chapter XII where remuneration paid exceeds Rs 2.50 lacs per month approval of shareholders will be required.
In my view if Directors are not involved in a full time capacity paying them remuneration on a  monthly basis would be irregular in view of what has been stated.
regards
kalidas

[shruti...@gmail.com]

query is completely regarding private company

 

1.can a MD be appointed as wtd in other company ?

2. can a wtd be a director in other company ?

3.section 203 is applicable oly on whole time kmp ?

so according to that a MD can be a MD or wtd in any company  

 

[Kalidas Ramaswami]

Section 203 only contemplates appointment as MD in two companies not as WTD.
regards

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Date: Thu, 4 Jun 2015 22:47:32 -0700
From: shruti...@gmail.com
To: foru...@googlegroups.com
Subject: [CA RUNGTA PD] Re: Whole time Director in two private limited as well as director remuneratioin from both the company

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