04 October 2011
If a Co. ABD Ltd. increases its paid up capital beyond 5 crores then within what maximum time should the company appoint a managing director... Kindly quote the relevent section (if any) which specifies the time limit for the appointment of MD.
There is no specific section for your query. However as per practice you should appoint him as early as possible. Also note at the end of financial year in which your paid up capital crosses crore limit there should be MD on the board.
06 October 2011
Section 269 of the Companies Act, 1956:-
Every public company or a private company which is a subsidiary of a public company, having paid up share capital of Rs. 5 crores or more shall have a MD/ WTD/ Manager. In your case you need to appoint MD within 90 days from the increase in the paid up share capital [Section 269(2)]
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