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Can director be on company's employee

Last post January 3, 2011 07:20 AM by viajaypande. 1 repiles.
May 19, 2010 01:18 PM 1
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Join Date: April 6, 2010
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Post Date: January 3, 2011
Posts: 14
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Can director be on company's employee

Dear All,


My Managing Director recently called me and told that all people in the company, including him and other director to be taken on payroll of the company and he should be also given PF professional tax and other benefits exactly in same manner given to a regular employee.

We are a Pvt. Ltd. Company.


Now my question is can a Director or Directors be treated as an employee of the company and can we keep them on payroll of the company?


Can we allow them to have Provident Fund and other benefit? Kindly provide reference of the Act or judgement


Regards

Govind
January 3, 2011 07:202
viajaypande
Total Posts: 2
Join Date: April 6, 2010
Rank: Beginner
Post Date: January 3, 2011
Points: 10
Location: India

Re: Can director be on company's employee

Dear givind

 

Yes the director can be the employee of the company

An individul can be director if he satisfied  certain crieria under COMPANIES ACT 1956.

the director and employee are two different caterories

An induvidual can be dierctor of the company under the COMPANIES ACT 1956

at the same time he can be the employee of the company

So the director can be taken on payroll and he can be treated  at par with the other employee .i.e.   taking salary ,deducting PF and PT  etc

REGARDS

 

VIAJAY

 

 
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