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Appointment of md/wtd

Sarvesh (Company Secretary) (179 Points)

08 February 2013

Hi can anyone please guide me on the following query:

Can a person who is already a Managing Director in a Co. be appointed as a WTD in other Company or vice-versa if possible.

Please share your views on the same at the earliest.

Regards

Sarvesh

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4 Replies

Sneha (Company Secretary) (1594 Points)
Replied 08 February 2013

According to my perception, if a director is Whole time Director in one company then he cant be appointed as Managing Director in other Company. However he can be MD in 2 companies in accordance with Sec - 316

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saitej (Article Trainee) (178 Points)
Replied 08 February 2013

A person cannot be appointed as a whole time director if he is already a whole time director in another company and A managing Director need not be a whole time director. But there are some restrictions regarding the appointment of a person as a managing director if he is already acting as a managing/whole time director for another company....Go through the following link and it will surely clear your doubts

All about Managing Director

/articles/managing-director-an-overview-14374.asp#.URTRyh2e2Tw

ars (CS) (445 Points)
Replied 08 February 2013

The words " whole time" themselves descibes the nature of the duty a WTD is supposed to perform.

he is entrusted with such duties wherein he is involved for the whole time. hence he can not act / work at any other place at the same time.

A MD is managing the affairs of the company, mainly day to day affairs. - he is also more or less performing duties for the whole time. but the nature of the duties are more of executive and some MD might get time, in some companies, to manage affairs of another co. A person can be MD of two companies at a time.

But the whole time director can not work - rather can not be employed in two companies, at a time.