Director of company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2013 Who is the board of directors ? who can become the director of company either member of company or any outsider individual ?

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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11 March 2013 Collectively all director constitute the Board of the Company.

First directors are named in the Memorandum of the Company. Thanafter any person may be appointed as director in the Board (Casual, Alternate or Additional) or in General Meeting.

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2013 Thank you Mr.ankur srivastava for solving my query .But e.g., xyz pvt ltd. has three member namely A,B and C. Is this possible that such three member become the director of company ?

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CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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11 March 2013 Yes, it may be possible. In most of the cases, it happens.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 March 2013 As per act if promoter become the director ,he is entitle to receive the dividend in proportion of his shareholding .but if he want not to be a director and he appoint another two member as dirctor .whether promoter has entitle to receive dividend or not ?

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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13 March 2013 No Promoter, no Director are entitled to any dividend from the Company. Only shareholders are entitled to Dividend.

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2013 But as i read in Act if any promotor become director ,he is entitle to receive dividend in proportion of his shareholding. But if promotor want not to be director then he appoint another two member as director then promotor is entitle to receive the dividend or not ?

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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14 March 2013 In that case also... he is getting dividend by virtue of his shareholding not by virtue of his becomming director or being a promoter.

As long as he is shareholder, he is entitled to dividend irrespective of the fact that he is director / promoter of the company or not.

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