Managing Director status on conversion of Company Status

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2010 Dear All

Please note that my Company has changed its status from Private to Public. The Company had appointed managing director while it was a Private Co.
My query is since the appointment was done through Board resolution as articles permitted to do so, the remuneration and period of his appointment was not fixed.
Now since the company is public, what would be the status of the managing director and what all provisions have to complied with?
We are planning to appoint him as a managing director via entering into agreement. What will be the effective date of his appointment?

Jayashree S Iyer

Jayashree S Iyer (Expert)

23 December 2010 He will continue as the MD of the public company for which you have to take following steps:
1) Hold Board meeting and approve his appointment and remuneration and decide the EGM date and place and issue notice for conveneing EGM and get his appointment and remuneration approved by the members in the EGM. Ordinary resolution is sufficient unless the articles otherwise provide.
2) File Form 23 if special resolution is passed
3) File form 25C for appointment of MD
4) Check whether the appointment and remuneration is as per Schedule XIII. Otherwise go for Central Government approval.

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2010 Thanks a lot. That was really helpful.

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