My query is that a public company A is having Executive Director who is not drawing any salary from the Company A. He is also a business head of International Company B which is A SUBSIDIARY of Company A located outside India and is drawing a salary from B. Now a company A proposes to appoint him as MD.He would be devoting full time & attention in the development of International business, and his presence which in general will be outside India and very less in India. He was not in India last year.
He will not be getting remuneration from A & will continue drawing salary from International company B.
Keeping in view the above facts, we understand that provisions u/s 309 (6) and particularly conditions mentioned in part 1 (e) of schedule XIII of Companies Act, places restriction in appointment of MD in the above mentioned scenario.
Keeping in view the above facts, we understand that provisions u/s 309 (6) and particularly conditions mentioned in part 1 (e) of schedule XIII of Companies Act, places restriction in appointment of MD in the above mentioned scenario.
Being the MD is it justified if he is not getting any remuneration from Company A
Request to give some suggestions or thoughts in this matter that whether such appointment can be made under Companies Act.
Request to give some suggestions or thoughts in this matter that whether such appointment can be made under Companies Act.
CAclubindia
