Section 316 of companies act, 1956
Querist : Anonymous
My query is that, inorder to obtain approval of Central Government as per section 316 (4), e-form 25A is required to be filed. In this case which company is required to file form ?
Whether ABC Ltd which is a public company should file it? OR
The Private ltd. company in which Mr. A is to be appointed is required to take approval under eform 25A ?
As per my understanding,the provision of section 316 is applicable to public company and not to private limited company.
A person can me appointed as MD in many private company without the approval of CG.
Form-25A is required when you are going to appoint such MD in other public companies.
Querist : Anonymous
I agree with your views. Just one thing to confirm here is when in the above case a MD is appointed in public company then he can be appointed only in one more company be it public or private company. But if such MD is not appointed in Public company then in that case a person can be appointd as MD in any number of Private companies.
Please advise if I am right in my understanding.
Yes, absolutely right.
Please also kept in mind that such private company should not be subsidiary of public company.
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