managing director

Save Share

This query is : Resolved

YOGESH GUPTA (Querist)
Follow

21 January 2010 Whether its mandatory to have a Managing Director in case of a limited company.

Our company has been converted from pvt to limited and there is no MD till date.

If its mandatory then time limit to fill Form 32 for change in designaion

Ankur Garg

Ankur Garg (Expert)
Follow

21 January 2010 Certain companies are compulsorily required to have a managing or whole-time director or manager (Section-269)

As per section 269(1), a public company or a private company which is a subsidiary of a public company, having a paid up share capital of rupees five crores or more shall have a managing or whole-time director or manager.

Therefore, a private company is not statutorily required to have managing or whole-time director or manager.

After conversion check the applicability of section 269 to ur co. and appoint MD as early as possible.

You have to file form 32 and 23 with in 30 days of MD appointment.

Regards

Ankur Garg

Ankur Garg (Expert)
Follow

21 January 2010 Check my article appointment of managerial personnel part-1 and 2.

You may also do one thing. Appoint MD from back date i.e. before conversion proceedings to avoid strict appointment provisions applicable to a public co.

In case of a pvt. co. you can appoint MD simply by passing a board resolution.

YOGESH GUPTA

YOGESH GUPTA (Querist)
Follow

21 January 2010 thanks

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now