Appointment of MD

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2011 As per the provisions of Companies Act, 1956 appointment of Managing Director is done by Board of Directors in the Board Meeting subject to the consent of shareholders in the General Meeting.

If Board of Directors appointed someone as Managing Director but the shareholders not given their consent and the resolution rejected by majority of shareholders then what will be the consequences of rejection by shareholders. Whether that person cease to be MD from the date of General Meeting and what will be the validity of the work done by the MD during the period from the date of Board Meeting and General Meeting.

Saroja

Saroja (Expert)
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06 July 2011 as per section 316,

Board resolution is enough for Appointment of MD, Share Holder approval is not required for that, k

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2011 section 316 is for the appointment of MD who is already a MD in another company.

As far as my knowledge concern appointment of Managing Director is done by Board of Directors in the Board Meeting subject to the consent of shareholders in the General Meeting.