Appointment of managing director

Prior approval of board is required.

Board resolution should be passed before the appointment of MD

Thanks for your replies frnds.

But nowhere in the section it has been mentioned that prior approval is required.

Please tell me the source of interpretration or any other source.

Thanks.

U need Board approval to appoint such a person as MD . And only after that u can appoint him. A Board Resolution is passed to Showing that Board is agreeing(with relevant Majority) to appoint him, 

Main section in your case is section 269 and section 316 is just a secondary section. Considering the overall intention of law regarding appointment of MD, I can say that unanimous board resolution under section 316(2) is not a prior one.

Thankyou for your precious opinions members..