section 314

Save Share

This query is : Resolved

Nikita Singh (Querist)

08 March 2010 please tell me the provision of re appointment of MD in a listed company on coplition of the term of five years...

Rasesh

Rasesh (Expert)

08 March 2010 The re-appointment can be done by passing a resolution at the meeting of the shareholders. Form No. 25C and Form No. 23 are required to be filed with the MCA.

Ankur Garg

Ankur Garg (Expert)

08 March 2010 Under section 269 appointment includes re-appointment hence all the provisions applicable on appointment are applicable in your case.

For re-appointment pass a board resolution before the expiry of term subject to the approval of shareholders.

As per DCA circular the appointment becomes effective from the date of BM resolution.

Also file form 23 u/s 192(4)(c) within 30 days of BM.
Further if the appointment is as per sch XIII than file form 25C within 90 days from the date of BM.

Regards

Ankur Garg

Ankur Garg (Expert)

08 March 2010 Find below the details for DCA Circular mentioned in my previous reply:

Circular No. 2/94 dated 10th February 1994.

As per this circular he may be re appointed initially by a BM resolution subject to GM resolution and such shareholder approval may be obtained in the first GM of the company held immediately after his appointment in the BM.

Regards

Nikita Singh

Nikita Singh (Querist)

08 March 2010 Thanks a lot sir......!

if appointment is not as per sch xiii
and CG approval has already been taken at the time of appointment, is govt approval again to be taken at the time of re-appointment or not???

Ankur Garg

Ankur Garg (Expert)

08 March 2010 As per the explanation to section 269 which says appointment includes re-appointment Yes According to me you have to obtain CG approval again.

However wait for the other expert opinion.

Rasesh

Rasesh (Expert)

08 March 2010 Central Govt approval is required for re-appointment.

Nikita Singh

Nikita Singh (Querist)

09 March 2010 Thanks...........