The Ministry of Corporate Affairs has issued a circular dated 26.06.2014 to provide clarification on the criteria of calculation of 182 days for the appointment of Resident Director as specified under section 149 (3) of the Companies Act, 2013 which says that a company shall have a director who has stayed in India for a period of not less than 182 days in the previous calendar year.
Henceforth, the ministry has clarified the position of law for the calculation of period of days of stay in India after having considered the ambiguity faced by the stakeholders i.e. it shall be reckoned from 1st April, 2014 to 31st December, 2014 as the first ‘previous calendar year’ for the appointment of Resident Director.
The circular containing such clarification can be accessed at the link given below.
Clarification on applicability of requirement for resident director.
