Whole Time Director in Two Public Limited Companies

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Ashish Gaggar

Ashish Gaggar (Querist)
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15 September 2009 Can a person be Whole Time Director in Two Public Limited Companies.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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15 September 2009 The companies act,1956 does not define a 'whole time director. However, explantion to section 269 states that the expression 'whole time director' includes a director in the whole time employment of the company. By virtue of the whole time employment, a whole time director cannot act as such in more than one company.

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)
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15 September 2009 No

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Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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16 September 2009 completely No

Ankur Garg

Ankur Garg (Expert)
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16 September 2009 Agree to a certain extent.

But my answer is a bit different. If both the companies are group companies having regd./corporate office in one premises then there is no issue at all.

As law is silent regarding WTD and explanation of 269 is not mandatory in nature (just an explanation) a person may be a WTD in 2 companies.

Regards

Ankur Garg

Ankur Garg (Expert)
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16 September 2009 As far as ROC or E-filing of 32 is concerned no prob at all. In the ROC system a persom can be reflected as WTD of 2 companies.

Regards