Appointment of managing director in a governmnet company
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 November 2011
In case of a public company in which state government is major shareholder, state government by an order appointed a person as Managing Director. but some of the directors have raised objection that government can not directely appoint any one as managing director only the board of directors have the right to appoint managing director.
my question is whether state government has the authority to appint Managing Director without the consent of board. if there is any notification or circular in this regard kindly refer. I think section 269 and schedule XIII is not applicable in case of government companies.
In case govt does not have authority to appoint MD and board has not consented to his appointment what will be the validity of work done by him during the period of his appointment by government order and board meeting.
my question is whether state government has the authority to appint Managing Director without the consent of board. if there is any notification or circular in this regard kindly refer. I think section 269 and schedule XIII is not applicable in case of government companies.
In case govt does not have authority to appoint MD and board has not consented to his appointment what will be the validity of work done by him during the period of his appointment by government order and board meeting.
21 November 2011
Board can not have authority to appoint MD if done by Board than confirmation need to obtained from the Shareholder.
In the above case if the objecting shareholder holding one tenth of share than they can make complain under Section 397, 398 to CLB for rectification.
In the above case if the objecting shareholder holding one tenth of share than they can make complain under Section 397, 398 to CLB for rectification.
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 November 2011
As per the procedure prescribed in the companies act for the aapointment of MD first board appoints the MD and then approval of the shareholders is taken.
my question was that whether government companies are exepted from following the above pocedure and in such companies MD can be appointed directly by Governemt.
my question was that whether government companies are exepted from following the above pocedure and in such companies MD can be appointed directly by Governemt.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ADVANCE PAYMENT OF ADVOCATE
- Depreciation of fixed assets- coop housing society in mumbai
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- TDS on Consultancy- Non DTAA
- GST rate and HSN code for sale of racing horses
- CREDIT NOTES WITHOUT GST
- Condonation . E-Verification of last year return .
- UNWANTED CREDIT BALANCE OF GST AS PER BOOKS
- Management System (IMS)
- Eway bill generation from place other than registeted
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
