Can a whole time director of a public co. be appointed as md
No, a WTD is an whole time employee of the company he can not be MD of another company.
According to Act, WTD cannot be apopointed as WTD of another Company but i hv not found any restriction on the appointment as MD of another Company.
As per my understanding, a whole time employee who is appointed as WTD will not be eligible to appoint an executive director in other company.
Other views are also solicited.
Guest
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.
WTD can not take position of WTD in another Company, but can he take position of MD in another company.
Guest
A WTD can not take position of MD in another company as well.
Regards
"MD by the definition given in Sec.2(26) has substantial powers of management of the company. What we avoid is dual employment of the person in two companies at the same time. However, law does not prohibit a WTD to acquire substantial powers of management of another company without any remuneration."
Hence, he can be appointed as MD of other company without remuneration.
As per my understanding, in case of MD the Companies Act has given liberty to company that either appoint him with substantial power or without giving substantial power as definition of MD says.
But, when i read explanation of WTD, it says, a whole time employee. The term whole time itself give a detail definition that he can not hold MD post in other company with or without substantial power.
If you want to take advantage of loophole on WTD under Companies Act, 1956, you can.
Guest
In how many company rules and regulations applicable to employees also applies to WTD.
Even MD works as whole time employee. MD also gives his whole time to the Company and can be appointed as MD in another Co.
I respect your views but in my opinion, since, Act has not restricted appointment of WTD as MD of another Co., he can take position of MD in group Company with strong reason of his such appointment.
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