Reappointment of MD without remuneration

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sanjiv kumar agarwal (Querist)

05 August 2010 As per section 269,in case od public company, managing director can be reappointed without the approval of central govt if conditiond of part I and Part II of sch XIII are complied.

in case condition of part I of schedule XIII are complied means not made any default.and we do not want to pay any remuneration to md, pl explain on the followings:-
1. whether md can be reappointed on without remuneration while on earlier term of 5 years which is going to expire now, he was taking remuneration.
2. if yes, in case no remuneration is to be paid whether part II of schedule XIII would not apply.
3.in case no remuneration is to be paisd, whether compliance of part i of schedule XIII would mean compliance of section 269 and approval of central govt would not be required

Jagruti (CS)

Jagruti (CS) (Expert)

05 August 2010 Yes, MD can be appointedw without remuneration for further period of five years in which case Part I shall be omplied by MD while Part II is not applicable. Also Central Govt approval is not required just need to file Form 32, 23 & FOrm 25C for reappointment

Ankur Garg

Ankur Garg (Expert)

05 August 2010 Remuneration to MD is not a compulsion at all so in this way totally agree with expert.

But compliance of part III is necessary so u hv to take approval of shareholders.

Thanks

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