Query: Can a Whole Time Director (KMP) of one Company be appointed as Managing Director of another Company in which KMP provisions are not applicable..?
Regards
Shilpa
6 Replies
CS Mitesh Mehta
(Company Secretary)
(17139 Points)
Replied 10 September 2014
No.
Section 2 (94) of the Companies Act, 2013 defines “whole-time director” as a director in the whole-time employment of the company.
Shilpa
(Company Secretary)
(234 Points)
Replied 10 September 2014
Sorry, I am not clear.
Regards
Shilpa
CS Mitesh Mehta
(Company Secretary)
(17139 Points)
Replied 10 September 2014
Whole time director is in whole time employment in the company. He can't take up any other employment in any other company.
Shilpa
(Company Secretary)
(234 Points)
Replied 10 September 2014
But in 2nd Company that Director is not appointed as WTD, he will be appointed as MD under section 196 and there is a difference between WTD and MD.
CS Mitesh Mehta
(Company Secretary)
(17139 Points)
Replied 10 September 2014
In 1st Company if director is WTD, he can't be appointed as MD in other company.
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 11 September 2014
Hi Shilpa,
a person acting as a WTD (KMP) in one company can act as an MD of other company only if the other company is the subsidiary of the first company or is a private company. However he can act as an independent director in other companies....
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