Director
This query is : Resolved
17 December 2013
“A” is Managing director in ABC Pvt Ltd which is 100% subsidiary of foreign company. The foreign company also holds 40% shares in another company say WXY Pvt. Ltd. There is no transaction or any direct link between ABC Pvt Ltd and WXY Pvt. Ltd.. My query is can “A” be appointed as an Director in WXY Pvt. Ltd. is any constraint or what is it impact of it on ABC Pvt. Ltd. And what are the compliances required for it.
Regards
Regards
17 December 2013
Dear Nidhi,
Yes he can be appointed as a director..there is absolutely no problem...
the only point is, he cannot be a whole time director in 2 companies...so incase you want to appoint him, you can appoint him as a non executive director
Yes he can be appointed as a director..there is absolutely no problem...
the only point is, he cannot be a whole time director in 2 companies...so incase you want to appoint him, you can appoint him as a non executive director
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17 December 2013
Hi
The provision of section 269 relating to appointment of managing director is not applicable on private company, so you are free to appoint such person in other company, no issue.
Pass a Board resolution and appoint such person as director in other company.
The provision of section 269 relating to appointment of managing director is not applicable on private company, so you are free to appoint such person in other company, no issue.
Pass a Board resolution and appoint such person as director in other company.
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17 December 2013
Dear Ankit,
Thank you so much. I f resign as MD from first company than there shall not be any issue. And due to common director and common parent company shareholding in both, ABC & WXY will become the related company??
Thank you so much. I f resign as MD from first company than there shall not be any issue. And due to common director and common parent company shareholding in both, ABC & WXY will become the related company??
17 December 2013
Dear Nidhi,
ideally since 316 does not apply in case of a private company...
it is better not to have the same person as MD in two companies...
yes...it is better for him to resign as MD from the former company and get appointed in the latter company.
he can however, continue to remain the in the former company as a Non Executive Director...there is no bar on that...
Incase you have any more queries...feel free to ask
ideally since 316 does not apply in case of a private company...
it is better not to have the same person as MD in two companies...
yes...it is better for him to resign as MD from the former company and get appointed in the latter company.
he can however, continue to remain the in the former company as a Non Executive Director...there is no bar on that...
Incase you have any more queries...feel free to ask
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17 December 2013
Dear Sir,
Just like to add that a person is foreign national, will there be any implication.
Just like to add that a person is foreign national, will there be any implication.
17 December 2013
no Nidhi....It wont make any difference...
just that if at all any compliances under RBI as regards the repatriation of funds etc are required, you may have to comply with those
just that if at all any compliances under RBI as regards the repatriation of funds etc are required, you may have to comply with those
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