Appointment of manager

This query is : Resolved

sanjiv (Querist)
Follow

19 September 2013 Suppose a Mr. X is employee in "ABC" Company and also non executive Director in "XYZ" Company.

now company XYZ wants to appoint him as manager without any remuneration, under section 269 of the companies act, 1956.

Can XYZ do so? if yes are there any specific provisions in companies Act, to take stand to support this decision?

Ajay Mishra

Ajay Mishra (Expert)
Follow

19 September 2013 Hi

Yes, they can do so.

Section 386(2) provides that a company may appoint or employ a person as its manager if he is the manager or managing director of one, and not more than one other company. Moreover, such appointment or employment shall be made or approved by a resolution passed at a meeting of the Board with the consent of all the directors present at the meeting, and of which meeting and of the resolution to be moved thereat, specific notice has been given to all the directors then in India.

However, the Central Government may, by order, permit any person to be appointed as a manager 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 manager. Section 386 does not apply to an independent private company [section 388A]. Further, a Government Companies is also exempted from the provisions of this section.

sanjiv

sanjiv (Querist)
Follow

20 September 2013 Thank you Ajay.

Ajay Mishra

Ajay Mishra (Expert)
Follow

20 September 2013 My Pleasure.............

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

prasanth kona

THOMAS JOHN

nilesh

Chandan Kumar

Kamaljeet Kaur

Subscribe Now

Appointment of manager

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

CA Final

Accountant

Article Assistant

GST CONSULTANCY