English

Mr. A is a commerce graduate. He has vast experience in the field of finance and the financial market. He wishes to become director of PQR co Ltd :

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Question

Study the following case/situation and express your opinion.

Mr. A is a commerce graduate. He has vast experience in the field of finance and the financial market. He wishes to become director of PQR co Ltd :

(a) Is he required to obtain DIN?

(b) Can PQR Co. Ltd. object to his directorship on lack of specialized qualification

(c) If he is appointed as director of PQR Co Ltd, is he entitled to remuneration?

Short/Brief Note
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Solution

(a) Mr. A is required to obtain the Director Identification Number (DIN) before becoming a director.

(b) PQR Co. Ltd. cannot object to the directorship of Mr. A on a lack of specialised qualification. This is because the Companies Act has not prescribed any academic or professional qualifications for the director.

(c) If Mr. A is appointed as director of PQR Co. Ltd., he is entitled to get managerial remuneration in the form of monthly payment like salary, Specified percentage of net profits or commission and sitting fees for attending Board meetings or Committee meetings.

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Key Managerial Personnel (KMP)
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Chapter 6: Directors and Key Managerial personnel of a company - EXERCISES [Page 100]

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Balbharati Secretarial Practice [English] Standard 11 Maharashtra State Board
Chapter 6 Directors and Key Managerial personnel of a company
EXERCISES | Q 3. 1) | Page 100

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