Whether a director in private company drawing monthly salary will not be a Whole Time Director? It is generally seen that directors of private companies start drawing monthly salary, but still their designation is not changed from ‘director’ to ‘WTD’ (which in fact may not be correct) since Sec.269 & Sch.XIII are not applicable to them. As per Sec.269 ‘whole-time director’ includes a director in the whole-time employment of the company. Now this definition is shifted to Sec.2(94) of CA 2013 and is applicable throughout the Act to all companies including pvt companies. Now the question is whether such directors will not be treated as WTD u/s 2(94)? If yes, provisions of Sec.196 &203 will apply. Accordingly all existing companies may have to take necessary action under CA 2013. If not, whether a director (other than WTD or MD) can be paid monthly salary [Ref.Sec.197(6)]?
Posted on: Sun, 23 Mar 2014 14:02:31 +0000
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