Category in appointment of director

This query is : Resolved

CA komal kalra (Querist)
Follow

28 January 2012 For appointment of director in pvt ltd co. which category should be selected??
when the person to be appointed as director is neither a promoter or professional and

independent category is used for public or listed cos.

Jiten Gupta

Jiten Gupta (Expert)
Follow

28 January 2012 You should put the Directors under Professional Category, if they are not subscribers to MOA (Promoter).....

Guest

Guest (Expert)

28 January 2012 Professional is not to be selected as category. Promoter should be selected indeed as professional directors are professional who render services to the company.

Upgrade to CAclubindia Pro. Subscribe Now!

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

28 January 2012 I am using 'promter' knowingly well that it is wrong since I have no other choice in the options available.

Guest

Guest (Expert)

30 January 2012 Dear Warrier Sir,

Promoter is not wrong category. You are selecting it correctly.

As term promoter is not defined anywhere in the Companies Act, 1956. It is also equally true that Promoter is not necessary a person who takes part in flotation of company. Promoter is defined in the listing agreement for listed companies only. Therefore for private limited and unlisted public cos. we cant verebit the defination as mentioned in the listing agreement. In nutshell, we can not restrict promoter as the one who is taking part in formation of company.

Hence in case our director is neither INDEPENDENT and PROFESSIONAL, he is certainly going to be promoter.

Thanks.

Guest

Guest (Expert)