Appointment of Whole Time Directors

A private limited company having 5 directors (3 permanent & 2 Additional) wishes to appoint 4 directors (2 permanent & 2 Additional) as whole time directors on equal salary of Rs. 50K per month for each director. What procedure is to be followed for such appointment? The paid up share capital of the company is Rs.1,00,000/- only.

 

Thanks in advance

Replies (3)

Well being a private co. appointment is easy. If you appoint 4 directors as WTD in one meeting then you have to face the problem of quorum as 4 directors are interested.

You have 2 choices—

1. First appoint 2 directors as WTD by passing a board resolution. In your case a board resolution is enough to appoint WTD. Hold a second BM and appoint remaining 2 directors as WTD. You have to pass 4 separate resolutions. (section 263)

2. Refer the matter to general meeting and pass 4 separate resolution for the appointment of WTD.  

Revert if there is any doubt.

Regards

Thanks Ankur for your prompt reply. Is any agreement between company and the proposed WT directors to be entered into specifying the remuneration, period and other terms & conditions of such appointment?

Thanks once again

Yes. It is advisable to enter in to an agreement with WTD.

Please find enclosed herewith a draft agreement with MD. Modify it according to your requirement.

Best Regards

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
23 July 2026
CA Inter

Vikram Jadhav and Company

Pune

CA Inter

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

Sahil Agarwal & Company

Mumbai

CA Inter

View Details
Company
Featured 02 August 2026
Accounts Executive

Aashok F&C Advisory

Guwahati

CA

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
29 July 2026
ACCOUNTANT

ONESTEP GST SOLUTION

New Delhi

B.Com

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
13 July 2026
AVP / VP - PCG Advisory

Workforce Connect

Mumbai

MBA

View Details
Company
21 July 2026
Chartered Accountant

Keshri & Associates

Thiruvananthapuram

CA

View Details
Follow