I have a querry regarding appointment of Whole-time Director
Q: A person is already a Director of X Pvt Ltd. and getting remuneration (PF deduction is also from salary) from X. Pvt Ltd as a director capacity. Can he be appointed as a Whole-Time Director of Y. Pvt Ltd. which is subsidiary of Public Company with remuneration ?
If appointed,Will it violate any of Companies or other Acts ? If not, what is the technical ground under which he won't be appointed as a Whole-time director ?
05 April 2010
Nowhere in the Companies there is restrition of appointing a person as whole time Director in more than 1 Company.
Hence you can employee a person in more than one Company provided all the Director consent for the same.
Also the maximum remuneration of individual from both the Company shall not exceed the maximum of remuneration applicable to him as per Schedule X111 from both the Company.
For ex: if in X Pvt Ltd. maximum remuneration payable is Rs. 30 lacs per annum while in Y Pvt Ltd. it is Rs 50 lacs per annum. Than greater of two i.e 50 lacs should be the total remuneration of WTD from both the Companies.
CAclubindia
