In our private company MD was appointed in 2008 as and no term of his office was decided as provision of 5 years terms of MD were not applicable on private company. Now we have to increase his salary from 01.06.2014, and his term will also be fixed for 5 years as per section 196 of CA 2013.
My query is whether we will be required to file MR-1 for his fixing of the term and if yes then what will be the effective date of appointment in this case?
Or this being just variation in his term of appointment , filing of MGT.14 for board resolution and separately for SR passed by shareholders in general meeting will be sufficient?
09 May 2014
I mistakenly wrote SR only OR is required so no MGT.14 for this but for Board resolution.
In my opinion it is just an variation in terms of the appointment of MD and that his term will now be till 31.03.2019 i.e. 5 years from 01.04.2014 when section 196 became applicable and that only form MG.14 for BR be filed. As the company is not appointing him but fixing his terms of appointment which has continued from past. But whne they reappoint him on 31.03.2015 then form MR.1 will be filed but not now.
09 May 2014
According to my opinion, both MR-1 (Return of appointment of MD / Manager) and From MGT-14 (Filing of resolutions & agreements) will be filed. There is no need to pass the special resolution, ordinary resolution is sufficient, if appointment is in accordance with Section 196, 197 & Schedule V of the Act
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