Appointment of Managing Director

This query is : Resolved

amarendra Jena (Querist)
Follow

17 February 2010 Dear Professional Friends,

Can a additional director be appointed as a managing or wholetime dirctor?

If yes, am i correct that the MD Or WTD for only upto AGm?

Kindly guide me

Rahul Gupta

Rahul Gupta (Expert)
Follow

17 February 2010 My view is that Additional Directors have all the rights as a Director have.

They can be appointed as a MD ow WTD. However as per section 260 such directors can hold office only upto the next AGM.

Provision >
260. ADDITIONAL DIRECTORS.
Nothing in section 255, 258 or 259 shall affect any power conferred on the Board of directors by the articles to appoint additional directors:

Provided that such additional directors shall hold office only up to the date of the next annual general meeting of the company :

Provided further that the number of the directors and additional directors together shall not exceed the maximum strength fixed for the Board by the articles

Experts views are solicited.......

Ankur Garg

Ankur Garg (Expert)
Follow

17 February 2010 Yes it is possible.

Appointment of additional director (Section-260) as a managing or whole-time director

If a person while he was the additional director of a company had been appointed as the managing or whole-time director, the later appointment also ceases simultaneously with the cessation of his directorship at the commencement of the annual general meeting. However, if such a person is re-elected as full-fledged director at the annual general meeting and thereby he continues as a director of the company, he shall continue as a managing or whole-time director also for the period for which he is so elected by the annual general meeting.

Message likes : 1 times

Ankur Garg

Ankur Garg (Expert)
Follow

17 February 2010 Office of managing or whole-time director comes to an end with the cessation of office of director

An individual who is a managing or whole-time director must also be a director of the company. If an individual is appointed as an additional director and then he is appointed either as a managing or whole-time director then the latter office of managing or whole-time director will automatically come to an end at the next annual general meeting of the company. The office of managing or whole-time director will come to an end simultaneously with the cessation of office of director. If the company wishes to continue him as a managing or whole-time director then he will have to be re-appointed as a simple director in the next annual general meeting.

Download a useful file for the appointment of managerial personnel from the link below:

https://www.caclubindia.com/forum/ca-final-chapter-wise-law-notes-part-i-49657.asp

Message likes : 1 times