Change in designation from wholetime director to managing director

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This query is : Resolved

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A listed company considering changing a Wholetime Director's designation to Managing Director must pass a resolution in a Board Meeting. This change then requires subsequent approval from the shareholders during a General Meeting.

Dileep Rastogi

Dileep Rastogi (Querist)
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28 July 2021 I want to know if a listed company wants to change the designation of its wholetime director to managing director, can company do it by passing a resolution in the Board Meeting or company has to take approval of its shareholders also. kindly convey your expert advise.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 July 2021 Yes, company can pass a resolution in the board meeting and appoint managing director, and to get it approved in the next general meeting.

CS Divesh Goyal

CS Divesh Goyal (Expert)
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29 July 2021 If a listed company want to change designation of WTD To MD. they have to pass resolution in BM subject to approval of shareholders in GM.

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