Appointment of Managing Director for morethan 2 Cos

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Dear All

My query is if Mr. A is Managing Director in a public limited company and also a joint managing director in another public limited company and now can he be appointed as a MANAGING DIRECTOR of a PVT LTD Company. All the three companies are group companies.

Replies (8)

He can not become a MD in morethan 2 cos. no matter whather it is pvt. ltd pub. ltd or group cos. he can not held the position of MD in morethan 2 Cos.

Dear Narahari,

 

Kindly refer section 316(4) which read as follows:

 

(4) Notwithstanding anything contained in sub-sections (1) to (3) of section 316, the Central Government may, by order, permit any person to be appointed as a managing director of more than two companies if the Central Government is satisfied that it is necessary that the companies should, for their proper working, function as a single unit and have a common managing director.

 

Thanks

Yes, with the permission of Central Government as above mentioned by Mr. Ankur Garg. He can be appointed as MD in all the Group companies.

 

Otherwise, no person can be so appointed.

Yes he can be appointed as the managing director in third company provided prior approval of central government is obtained and the board of directors of the third company where he is to be appointed as the managing director has passes an unanimous board resolution 

Hi, Please quote the section which states that the Director of a Private Limited Company can hold the office of Director in more than one Company. Thank you in advance

 

Originally posted by : Roopa
Hi,

Please quote the section which states that the Director of a Private Limited Company can hold the office of Director in more than one Company.
Thank you in advance

 

As per section 275 a person can hold the position of a director in maximum 15 companies at a time.

 

Regards

Section 278:

Following directorships shall not be counted for the purpose of determining the 15 Directorships

(1)   Pure Private Limited Company and not Deemed Public Company

(2)   Unlimited Company

(3)   Alternate Director

(4)   Section 25 Company

---------------------------------------------------------------

Ankur Shah (Practicing Company Secretary)

Ahmedabad, Gujarat - 380015

Mobile: +91-90330 03922, 94276 33901

E-Mail: ankur @ csankur.com

Website: www.csankur.com

Blog: www.csankur.blogspot.com

Can the same person be appointed as MD of more than 2 companies under the Companies Act,2013?

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