Appointment of Managing Director

Dear Members,

could any body guide me on the following issue:

a) Mr.A is whole time employee(Not Director) of XYZ Pvt Ltd company and also getting salary from this company .

b) ABC Pvt Ltd(Which is subsidiary of a Public company) wants to appoint Mr.A as Managing Director of the ABC Pvt Ltd.

Is there any violation of companies Act, 1956 ?

As per my concern companies Act, 1956 no where restrict for appointment.

If i m wrong please guide me

CS Amarendra

9505507591  

Replies (3)

Hi Amarendra......

Mr. A can be appointed as Managing Director of ABC Pvt.Ltd. provided first he is appointed as a Director of the said Company.

In my opinion there is no contravention of the provisions of the Companies Act, 1956 and u can appoint Mr. A who is a whole time employee of XYZ Pvt. Ltd. as Managing Director of ABC Pvt. Ltd.

My question is whether Mr. A who is already devoting his whole time and energy to XYZ Pvt. Ltd. will be able to handle and discharge the responsibilities as Managing Director of ABC Pvt. Ltd. effectively???????

Best Regards

Udit Sharma 

Dear Udit,

Thanks for quick reply. As Mr.A has ready to discharge his duty as MD for ABC Pvt Ltd without remuneration. is there any restriction ?

is there any circular or case law regarding the above case ?

 if u ve pls share 

Thanking you

CS Amarendra

Agree with learned member as long as Mr. A is capable of discharging his duties as MD of ABC Ltd.


Thanx

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