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ubfree64 (Software)     06 November 2021

Regarding director appointments in private limited company

Hello,

I have two question both regarding director appointment, their validity and way to address them.

1.  A Private Limited Company appoints an Independent Director in Non-Executive Director role with 25% shareholding. Also this person got paid salary.

2. The same company had appointed another Director as an Independent Director in Executive Director role with 50% shareholding few years back.

The company always had two directors and they are related to each other (same family). Are these appointments legally valid and ways to address illegalities if any...

Thanks



Quick Summary
This discussion addresses the legality of appointing independent directors in a private limited company, particularly when they hold significant shareholdings (25% and 50%) and receive salaries. It also touches upon the validity of appointing directors from the same family. The response suggests there are no legal restrictions on these appointments, provided the correct procedures for director appointments are followed.

 3 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     06 November 2021

How to Appoint or Add New Director in Private Limited Company

  1. Obtain Consent of Proposed Director: ...
  2. Digital Signature of Proposed Director : ...
  3. Obtain Director Identification Number (DIN): ...
  4. Issue of Notice of General Meeting: ...
  5. Hold Extra Ordinary General Meeting of the Company : ...
  6. Issue Letter of Appointment.
1 Like

Dr J C Vashista (Advocate)     07 November 2021

It can appoint both of them as Directors.

What is your concern/ locus standi ?

1 Like

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     07 November 2021

1. There is no legal restrictions in the appointment of aforementioned directors.  Further Directors can be from the same immediate or distant family members.

Keep Smiling .... Hemant Agarwal
for CHS Articles /Applications /Videos Visit:  www.chshelpforum.com

1 Like

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