Presence of managing director in the company

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2012 Dear All

If Company's paid up capital is Rs 5 crore. And Managing Director has resigned from the post of MD. In that case, what would be the penalty?

Annual Return ca be signed by one Director & Company Secretary.

1. But is there any specific time period under which Company should have to appoint new MD?

2. And, if Company doesn't appoint any MD for the period of next 6 months or one year, then what would be the consequences? here, company violate Section 269 .....

You are requested to please give some solution in this regard.

Regards

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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09 August 2012 In my view neither section 269 nor schedule XIII of the Act lay down any time period or penalty.

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2012 Thanks Abhishek ..........

So, there is no harm if Md resigned from the office of Managing Director.

And, we can appoint MD even after one year and there is no violation .........

And, in case of Annual Return, one Director and CS can sign it.
In 'Details of Directors (past and present), we should directly show his designation as director only if he continues to be a director of the company

Right!!

CS Taher

CS Taher (Expert)
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10 August 2012 Appointment of MD is not mandatory execption to that is you must have one or more Whole Time Director.

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2012 Thanks Taher,

But, if there no whole time director and we already have MD but he resigned due to some reason, is there any violate of law if Company appoints MD after one year period?