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Can an article assistant be a director

BHAWESH KR JAIN (Student CA Final ) (40 Points)

09 December 2013

Can An Article assistant be a non-executive director of a company ?

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Deepak Gupta (CA Student) (15922 Points)
Replied 09 December 2013

Originally posted by : BHAWESH KR JAIN
	Can An Article assistant be a non-executive director of a company ?

Permission for other engagements (Regulation 65 & 78)
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An articled/audit assistant is required to submit an application in Form 112, duly recommended by the Principal to obtain prior permission of the Council to be engaged in any business or occupation.
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Permitted Engagements
- Teaching upto 9 hours a week
- Directorship in a Family Company
- Sleeping Partner in a Family Business.

The above are, subject to the following guidelines prescribed by the Council:
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B) For Director:-
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1) The Company in which the articled/audit assistant proposes to be appointed as a Director should be a Family Company i.e. a majority of the capital of the company is held by the members of the family of the articled/audit assistant.
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2) The company should have been in existence before the clerk had entered into articled/audit service.
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3) Neither the principal nor the firm in which he is engaged as an articled/audit assistant is a partner or an auditor of the company..
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4) The assistant should not be entitled to receive any allowance apart from the sitting fee for attending the directors meeting.
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5) The assistant should give an undertaking on a non-judicial stamp paper duly sworn in before a Magistrate that he would not take any active part in the business of the company apart from attending the Directors meeting..
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6) The other Directors should confirm that such an undertaking would not interfere with the normal functioning of the company.

Requirements:
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1) Apply in Form 112 duly recommended by the Principal alongwith.
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2) Attested true copy of Memorandum and Articles of Association of the company.
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3) Undertaking by the articled/audit assistant duly sworn in before a Magistrate/Notary Public.
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4) Declaration by the Principal of the articled/audit assistant.