can an N.R.I can become a M.D/Whole Time Director in a company. I know that there is no restriction on N.R.I to become a director but not so clear on M.D/ W.T.D. Section 253 of the Companies Act 1956 is silent about the same.
27 January 2011
There is no restriction in NRI becoming a MD/WTD as per Section 269 of the Companies Act. However as per Part I Schedule XIII, if he is not resident in India, CG approval is required.
CG approval is required only in case of appointment of N.R.I as M.D/W.T.D in Public limited company or Private limited company which is a subsidiary of Public company having paid up capital of more than Rs.5 cr. But is there any compulsion to appoint M.D/ W.T.D in Private limited company? If there is no compulsion then there is no need to appoint the M.D and no need to take approval. Only 2 directors can be appointed.
28 January 2011
Agree with Hardik that a private company need not appoint MD/WTD. Only public companies / subsidiaries of public companies having a paid up capital of more than Rs.5 cr. is required to appoint MD/WTD as per Section 269 of the Companies Act, 1956. Here again CG approval is required only if he is not resident in India.
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