Executive director in two companies simultaneously

This query is : Resolved

CS VIMAL SHARMA (Querist)
Follow

11 April 2013 Dear Experts,

Pls let me know whether a director become executive director in two companies simultaneously? One is Public Company and other is private Company?

Ajay Mishra

Ajay Mishra (Expert)
Follow

12 April 2013 Hi

Yes he can be executive director in two company. For example a director can be MD in two company and he can draw remuneration from both companies. But he can not be a whole time director in both company.

CS VIMAL SHARMA

CS VIMAL SHARMA (Querist)
Follow

12 April 2013 Hi Ajay Ji,
Thanks for reply but I think Executive Director is also a wholetime director..Sec-316 talks abt MD while Sec-386 talks abt Manager..I am bit confused abt ED..In my case I am going to appoint a director as ED in pvt ltd company who is already a ED of a public Company and a director (ordinary director not ED/WTD) of a subsi of public company..

Upgrade to CAclubindia Pro. Subscribe Now!

CS VIMAL SHARMA

CS VIMAL SHARMA (Querist)
Follow

12 April 2013 Sir when we file form 25C for Executive Director..we select the category wholetime director..coz only three categories are mentioned in the form...1. Manager 2. WTD 3.MD...now it means WTD=ED

Ajay Mishra

Ajay Mishra (Expert)
Follow

12 April 2013 Hi

For Private Limited company, you only file Form-32 for appointment of WTD.

In case of MD, only Form-32 and 23 is required to be filed, no need to file Form-25C.

CS VIMAL SHARMA

CS VIMAL SHARMA (Querist)
Follow

12 April 2013 Sir, My concern is not form 32/25C/23..I am jss saying ED is equal to WTD..as per form 25C or if WTD can not be appointed in two companies at one time...how can ED be appointed in two companies at one time..ED and WTD is different, its nowhere defined in the Act..