Shridhi Jain (Company Secretary) (1678 Points)
13 October 2011Dear members,
Ours is a Pvt. Ltd. co. Thr r two Directors, one is MD n other is WTD.
Now WTD get promoted as "Deputy MD".
Is the appointment needs holding EGM and passing a Special Resolution u/s 192(4)(c) of Companies Act. ?
Wat is to be filled in 'Designation' column of Form 32 ? Does "consent of Director" is required to be attached in this case or attaching a "board resolution" is enough?
Pls reply. Its a bit urgent.
Thnx in adv.
G.L.Subhramanian
(PCS)
(206 Points)
Replied 13 October 2011
Hi Shridhi
For a private company, board resolution is enough. Also, in designation column, select Managing Director. The ranks of deputy and assistant are internal matters of the company. Consent is required only for a public company as per the Act.
Regards,
Subbu
Shridhi Jain
(Company Secretary)
(1678 Points)
Replied 13 October 2011
But sir,
if i select "MD" as designation then on MCA site, both director will b shown as MD.
I think a company cannot have two MD. I mean only two directors that both r MD.
Pls advise.
AMIT MISHRA
(Legal Professional)
(393 Points)
Replied 13 October 2011
Hi Sridhi,
A Company can have more than one managing directors as per Department's Clarification F. No. 8/16/(1)/61-PR] . As such there is no statutory position like deputy MD so you can either appoint him as MD or let position unchanged.
Thanks & Regards
Amit Mishra
BSamrish & Co.
New Delhi
G.L.Subhramanian
(PCS)
(206 Points)
Replied 13 October 2011
Hi Shridhi
A Private Company can have more than one MD as long as they are not MD/Manager of not more than one public company. (Section 316)
Subbu will do. No need for sir. I am jus 23.
Regards,
Subbu
Shridhi Jain
(Company Secretary)
(1678 Points)
Replied 14 October 2011
ok....
i think there is no need of EGM. BR with unanimous approval of the directors will solve the purpose.
Bt one of my frnds is saying that EGM should b held for the purpose. Wats to be done?
In sectoin 316, it is written that a person can not b MD in more than two companies, if one of the co. is pub. co. Does it mean that he can b directors in as many pvt. co. if he is not MD in any pub. co.
The procedure I am going to follow is:
Pls comment. Is that fine ?
Thanks Subbu n Amit for the help. Kindly reply.
G.L.Subhramanian
(PCS)
(206 Points)
Replied 14 October 2011
Hi Shridhi,
Section 316 says that a person can be a MD for any number of Private companies. But if he is to be appointed as MD of a public company, he can be a MD of only one other company which may be private or public.
"The procedure I am going to follow is:
Pls comment. Is that fine ?" - Absolutely..
Regards,
Subbu
CAclubindia
