Deepanshu arora (chartered accountant) (130 Points)
19 March 2010plz any boby reply me immediately
is a private ltd compnay as per companies act 1956 can become consider public company if it is 100% owned subsidiary of pulic listed foreign companies as per foreign act.
if yes/no, plz also mention relevant section and cirular nos. if applicable.
my e-mail id dipanshu2 @ gmail.com
CA AYUSH AGRAWAL
(Kolkata-Pune-Mumbai)
(26986 Points)
Replied 19 March 2010
Tarun Dua
(Compliance Officer)
(126 Points)
Replied 19 March 2010
hi,,
m a student of cs ececutive program,,,,,m a having a doubt regarding d concept of directors,,, plz tell if a director(rotational) is appointed as a M.D by virtue of an agreement b/w him n d co.,,,,,.. with a tenure of 5 years,,,, bt as a rotational directr, he his liable to ritire n he is not reappointed,,,,.. so what will happen to that agrrement will it be over \or will remain valid,,, will he get compensation ,or what in that case....also memtion sec no .. plz \
teejay email id tarundd_2007 @ yahoo.com
Jagruti (CS)
(Service)
(1953 Points)
Replied 20 March 2010
If 100 % capital is held by the Foreign Company than it cannot be treated as Subsidiary of Public Company [Refer Section 4(7)]
Jagruti (CS)
(Service)
(1953 Points)
Replied 20 March 2010
Hi Teejay,
Regarding MD liable to retire by rotation.
His tenure of 5 years will not be interuupted by his retiring at AGM as it is procedural.
But if he is not reappointment on retirement due to whatever reason he cease to be Director and thus he ceses to be MD. As for appointment of MD he should be director of the Company [ Section 2(26)]. Thus agreement will be terminated from the dt of his cessesing and he will not be entiled to any remuneration as MD from that date
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