LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Alternate ditector be an MD???

AMIT MISHRA (Legal Professional) (393 Points)

23 August 2011

Hi All,

Can anyone please let me know that whether an alternate director be appointed as an Managing Director?????

Thanks & Regards

Amit Mishra

Reply
Follow
Share

4 Replies

G.L.Subhramanian (PCS) (206 Points)
Replied 23 August 2011

`Hi Mishra,`

`There is nothing in the Act to prohibit such appointment. But as good corporate practice, it is better to avoid, as a person cannot act on behalf of two persons in the long run (MD for himself and Alternate director for another director)`

`Regards,`

`Subbu`

1 Like

(Guest)

The BoD of a co. may, if so authorised by its articles or by a resolution passed by the co. in general meeting, appoint an alternate director to act for a director during his absence for a period of not less than 3 months from the State in which meetings of the Board are ordinarily held.

An alternate director so appointed shall not hold office for a period longer than the period for which the original director hold office and vacate office if and when the original director returns to the State in which meetings of the Board are ordinarily held

1 Like

RG - A Helping Hand (Company Secretary) (13867 Points)
Replied 23 August 2011

Hi Amit,

Yes an alternate director can very much be appointed as MD subject to the office vacation conditions of an alternate director. Like he has to vacate his office whenever original director returns to the state.

Regards

1 Like