Appointment of an md
Querist : Anonymous
Query:
Mr. A is an MD in a public company. Now we want to appoint him in a private company also. What are the relevant sections and procedures to do the same.
Thanking You
Regards
Querist : Anonymous
Mr.A is an MD in a public company. Now we want to appoint him as an MD of private limited company also. What are the relevant sections and procedures to do the same.
Thanking You
Regards
A public company or a private company which is a subsidiary of a public company may appoint or employ a person as its managing director, if he is already the managing director or manager of one, and of not more than one, other company (including a private company which is not a subsidiary of a public company). The condition for appointment is that the appointment or employment is made or approved by a resolution passed at a meeting of the Board with the unanimous consent of all the directors present at the meeting and of which meeting the resolution to be moved thereat, specific notice has been given to all the directors then in India. [Section 316(2)]
In such case the provisions of section 190 shall apply as regards to the giving of special notice of the meeting and of resolution to be moved thereat in case. The notice must specifically mention the business to be transacted at the meeting and contain proposed resolution to be passed at the meeting.
The Central Government may, by order, permit any person to be appointed as a managing director of more than two companies, if the Central Government is satisfied that it is necessary that the companies should, for their proper working, function as a single unit and have a common managing director.
Querist : Anonymous
But Mr.A is already an MD in a public company. Now we want to appoint him as an MD in a private company which is not a subsidiary of a public company.
I am not clear whether Section 316 will apply in this case.
Thanking You
Querist : Anonymous
Can you please help me as to which provisions and sections shall apply in this case.
The provision of section 269 relating to appointment of MD will not apply to private limited company. The appointment will be made as per your company's article.
Check your company's articles and appoint MD.
Querist : Anonymous
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