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Md and wtd

Khushboo Maheshwari (Company Secretary) (548 Points)

17 July 2012

Can a person be Managing Director in one unlisted public limited company and a Whole time Director in one listed public limited company at the same time

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6 Replies

CS Mitesh Mehta (Company Secretary) (17139 Points)
Replied 17 July 2012

A managing director can be a managing director of more than one company (Sec. 316) but a whole time director, being in whole-time employment of the company, cannot be a MD in other company. Whole-time director is a director who spends his whole-time in the management of the company.

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 17 July 2012

Agree with Mitesh JI.... A person cannot be in whole time employment in more than 1 place... except under section 316 wherein a Managing Director can be only Managing Director in 1 more company.

Khushboo Maheshwari (Company Secretary) (548 Points)
Replied 28 July 2012

thanks for the reply...the query is a bit more extended. Mr A was Managing DIrector in a public limited company since 2009. Then in 2011 a listed company appointed him as whole time director. Now in this case, which company is in default, what are the consequences and what remedial measures need to be taken?

Please advice

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 28 July 2012

Mr. A has to decide whether he wants to continue as Managing Director of Public Limited Company or shall act as Whole Time Director of such Listed Company. However, he may act as Non Executive Director without any problem.

A person cannot be in whole time employment in more than one Company.