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.
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
| Originally posted by : Roopa | ||
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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 |
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As per section 275 a person can hold the position of a director in maximum 15 companies at a time.
Regards
Can the same person be appointed as MD of more than 2 companies under the Companies Act,2013?
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