Holding Position of Managing Director

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Generally, a person can be appointed as a Managing Director in more than one company. However, this requires the unanimous approval of the Board of Directors and shareholders via an Ordinary Resolution. The Companies Act 2013 also specifies that an individual can be a Managing Director of one company and one other company, provided this appointment is approved by the Board of Directors through a resolution with the consent of all present directors.

SUDHEEP M

SUDHEEP M (Querist)

10 May 2023 Sir,

I want to know whether a person can hold the position of managing director in more than one company at the same time. If any person currently holding such position, whether it will attract any penal provision?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 May 2023 A person can be appointed as the Managing Director in multiple companies subject to the prior unanimous approval of the Board of Directors and the shareholders in the General Meeting of the Company by passing a Ordinary Resolution.

Jatin Bajaj

Jatin Bajaj (Expert)

25 May 2023 A person can be appointed as the managing director of one and not more than one other Company as per provisio to section 203(3) of the Companies Act 2013 and such employment or appointment shall be approved by the Board of Directors by passing board resolution with the consent of all the Directors present at the Board Meeting

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