https://www.taxtmi.com/caselaws?id=166963 A Managing Director of a private company may be treated as an employee under the Employees' State Insurance Act where he is appointed by board resolution, receives fixed remuneration, and functions under the Board's control. The Court held that such remuneration is wages within the statutory definition, and that the Act permits dual capacity: a person may be both director and employee. The partnership-law distinction was inapplicable because a company is a separate juristic entity from its directors. The Managing Director therefore had to be counted for determining coverage under the twenty-person threshold, and the establishment's liability under the Act was upheld. en-us Thu, 06 Nov 1997 00:00:00 +0530 Fri, 19 Dec 2014 12:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=166963 A Managing Director of a private company may be treated as an employee under the Employees' State Insurance Act where he is appointed by board resolution, receives fixed remuneration, and functions under the Board's control. The Court held that such remuneration is wages within the statutory definition, and that the Act permits dual capacity: a person may be both director and employee. The partnership-law distinction was inapplicable because a company is a separate juristic entity from its directors. The Managing Director therefore had to be counted for determining coverage under the twenty-person threshold, and the establishment's liability under the Act was upheld. Case-Laws Central Excise Thu, 06 Nov 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=166963