Dear anonymous,
I asked some of the corporate lawyers I know, and they confirmed it is not allowed. Director is a specific term in company law and cannot be used in common terms of direction. If that were the case, you could also be called managing director if you manage directions. That's what we used to call chop logic.
That can, of course, be used for a position of an actual director - art director, etc., which is a common parlance term for the function. Unfortunately, none of us have time to go through the Companies Act to find the relevant section of the act. I hope to check it out next week. Message me separately, and we will discuss it offline.
This is the reason why companies used to use the term "President" instead of directors for top posts. A President need not be a member of the board.
From India, Mumbai
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2491I asked some of the corporate lawyers I know, and they confirmed it is not allowed. Director is a specific term in company law and cannot be used in common terms of direction. If that were the case, you could also be called managing director if you manage directions. That's what we used to call chop logic.
That can, of course, be used for a position of an actual director - art director, etc., which is a common parlance term for the function. Unfortunately, none of us have time to go through the Companies Act to find the relevant section of the act. I hope to check it out next week. Message me separately, and we will discuss it offline.
This is the reason why companies used to use the term "President" instead of directors for top posts. A President need not be a member of the board.
From India, Mumbai
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@Saswatabanerjee, Incidentally, the HR heads in Chemplast and also in DeutscheBank in India are designated as MD (HR), and they are not board members. I would like to know the sections under which this practice is banned. My company secretary says there is no such law, and if it did exist, many would have been prosecuted by now. I will also check it out. I just managed to get the Companies Act with commentary.
From United+States, San+Francisco
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From United+States, San+Francisco
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