Nature of employment of Managing Director

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This query is : Resolved

SREE VIDHYA RAJU (Querist)

12 June 2009 Modified query :

The appointment letter was issued to an employee designated as Deputy Managing Director. The said appointment letter is a regular letter as issued to any other employee having the normal terms of contract for employee. Subsequently the Board approves his appointment as Additional Director on the Board on 24th January 2006 wherein it was also proposed to appoint him as Deputy MD for a period of 5 years.

Subsequently on 11th December 2006, the Board elevates him as the Managing Director with immediate effect for a period of five years.

Pl. note no separate MD contracts have been signed by the Company.

His salary is above 24 lakhs per annum. Now pl. advise me whether his nature of employment is permanent (because he is firstly an employee) or is it contractual (as MD is appointed for 5 years although there is no separate written contract) which I need to disclose in Section 217(2A) statement.

Need clarity on the above pl. asap

Mohit Garg

Mohit Garg (Expert)

12 June 2009 Dear Raju,

If u appointed a person in any co. as MD u have to file Form-23 with the ROC and also need to attach some details for the same.
In Section 217(2A) details will arise only if his salary is more than or equal to Rs.2.00 Lac p.m. and you will show him as MD.

SREE VIDHYA RAJU

SREE VIDHYA RAJU (Querist)

12 June 2009 The earlier reply has not answered my query . Hence i have modified the query for your understanding

Mohit Garg

Mohit Garg (Expert)

12 June 2009 tell me one thing in its employment letter/resolution do you mentioned that his appointment is for particualr contract and in the Board meeting in which he is appt. if not than his appt. as permanent not contractual.

SREE VIDHYA RAJU

SREE VIDHYA RAJU (Querist)

12 June 2009 I have modifed the query . pl give clarity

Ankur Garg

Ankur Garg (Expert)

13 June 2009 In any case you have to give his/her details as per section 217(2A) coz:

1. he is still employee.
2. drawing remuneration @ 2 lac p.m.

Regards

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