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appointment of managing director

Vipul Garg (Company Secretary) (60 Points)

29 September 2010

hi friends

pls answer the following query;;;;;

the paid up capital of our public company touched the limit of 5 crores...

now pl tell me, according to section 269 of the companies act, 1956, In how much time we have to appoint managing director...is there any time limit like 6 months or something else...or we have to appoint immediately..

and also tell me that in how much time we have to appoint the company secretary....

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5 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 29 September 2010

Hello,

For both the appointments there is no time limit fixed by law. However one thing is sure that both the sections are fully applicable on you company.

So i would advise you to appoint MD and CS as early as possible within the reasonable time.

Appointment not being a big issue from ROC's perspective, it would be very difficult for you to explain the undue delay in appointment.

Regards

Mitali Agarwal (Company Secretary) (638 Points)
Replied 29 September 2010

There is as such no time limit for appointment of MD but it will constitute non-compliance of Section 269 and such liable for penalty as prescribed in the Section.

Same is the provision for app. of CS under Section 383A.

Ajay Mishra (Company Secretary) (74337 Points)
Replied 29 September 2010

Dear Mr. Vipul

In such situation you must complied both section 269 and 383A. In section 383A you have scope to escape prom this section on the ground of weak financial position, but there is no such escape under section 269.

I will, suggest you to appoint MD and CS before signing of Balance sheet and profit and loss account for the financial year in which the capital is reached more than five crore.

Regards

Santosh (Student ( Final Year - New )) (348 Points)
Replied 29 September 2010

Originally posted by : Ajay Mishra
	Dear Mr. Vipul In such situation you must complied both section 269 and 383A. In section 383A you have scope to escape prom this section on the ground of weak financial position, but there is no such escape under section 269. I will, suggest you to appoint MD and CS before signing of Balance sheet and profit and loss account for the financial year in which the capital is reached more than five crore. Regards