Advise the Board of directors of Clean Ltd. regarding appointment in the following scenarios: Can Ram who is already director of Clean Ltd. be appointed as Chief Executive Officer (CEO) or Chief Financial Officer (CFO) o

CS Executive · Company Law · PYQS · June 2022
Advise the Board of directors of Clean Ltd. regarding appointment in the following scenarios: Can Ram who is already director of Clean Ltd. be appointed as Chief Executive Officer (CEO) or Chief Financial Officer (CFO) of the same company ?

Answer & Explanation:

"Chief Executive Officer" means an officer of company, who has been designated as such by company - section 2(18) of the Companies Act, 2013. "Chief Financial Officer" means a person appointed as the Chief Financial Officer of company - section 2(19) of the Companies Act, 2013. The Companies Act, 2013 does not prohibit appointment of director as CEO or CFO of same company but company has to comply with other provisions of Act (i.e. disclosure of interest, office of profit or place etc.). Further as per Regulation 77 of Table F, a director can be appointed as Chief Executive Officer, Manager, Company Secretary or Chief Financial Officer of same company. Accordingly, Ram who is the director of Clean Ltd. can be appointed as CEO or CFO in the same company.

Topics: Appointment and Qualification of Directors

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic