Appointment of Company Secretary as Director of Public Co.
This query is : Resolved
Guest
Guest
(Querist)
22 February 2010
Whether a company secretary in employment of a listed public limited company drawing salary of Rs. 40,000/- per month can be appointed as Director in that company ?
Esteemed experts are requested to reply to the query substitiating relevant circular/ clarification/ case law.
With Regards,
Neha Jain
nehajaincs@gmail.com
Esteemed experts are requested to reply to the query substitiating relevant circular/ clarification/ case law.
With Regards,
Neha Jain
nehajaincs@gmail.com
22 February 2010
Yes.
A company secretary may be appointed as a director. But by virtue of explanation to section 269 such appointment would be equal to appointment of WTD and compliance with section 269 is mandatory.
But by virtue of a DCA clarification in this regard if you appoint CS as director then no need to comply section 269 irrespective of its applicability provided substantial powers of management are not given to such CS on appointment as a director.
So by passing a board resolution you may appoint CS as director.
Regards
A company secretary may be appointed as a director. But by virtue of explanation to section 269 such appointment would be equal to appointment of WTD and compliance with section 269 is mandatory.
But by virtue of a DCA clarification in this regard if you appoint CS as director then no need to comply section 269 irrespective of its applicability provided substantial powers of management are not given to such CS on appointment as a director.
So by passing a board resolution you may appoint CS as director.
Regards
Guest
Guest
(Querist)
23 February 2010
Thanks ankur sir for your reply.
But i m little confused regarding one point. I am not clear as to whether a person can become director of a company and simultaneously act as whole time CS in the same company.
To put into simple words:
There is a company ABC Limited. There are 3 directors of that company i.e. A, B and C. Mr. D is company Secretay of ABC Limited. Now my query is Whether D can be appointed as director of the company and can also act as whole time CS simultaneously.
But i m little confused regarding one point. I am not clear as to whether a person can become director of a company and simultaneously act as whole time CS in the same company.
To put into simple words:
There is a company ABC Limited. There are 3 directors of that company i.e. A, B and C. Mr. D is company Secretay of ABC Limited. Now my query is Whether D can be appointed as director of the company and can also act as whole time CS simultaneously.
23 February 2010
No need to worry.
When DCA through their circular allow the appointment of CS as director that means there would be no objection to MCA regarding simultaneously working of CS as director.
REgards
When DCA through their circular allow the appointment of CS as director that means there would be no objection to MCA regarding simultaneously working of CS as director.
REgards
23 February 2010
To conclude he can work in both capacity. But do not give him substantial powers other wise you have to comply with all the provisions of section 269 regarding appointment of WTD.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Inventory of finished goods
- Disallowance of Section 43B(h) to sez units
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Sale of property furniture sale
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Confusion around Form 26QB fields
- RCM INVOICING FROM NOV-2024
- GST Regis.
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Tds on building rent monthly
- As per schedule III of balance sheet how to pass journal entry
- Is correct way to find out capital of individual on 31st March
- Individual capital equal to which assets of balance sheet
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
