Appointment of MD - urgent !

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Hello members

Please confirm me on this.

1. Can an NRI ( non resident ) be appointed as MD of a pvt ltd co. if not , what if he satisfies to be resident by being present for 182 days?

2. For the appointment of MD in a public co , he needs be a resident and the explanation provides for being resident he needs be in India for previous 12 months continously.

Now if an NRI , non resident , is appointed as MD of a pvt co , whose articles are satisfied on this, and that pvt co gets converted into public , would the appointment of MD gets void.

would the MD be required to vacate the office of MD after conversion.

regards

neeta

Replies (1)
Originally posted by : Neeta
Hello members
Please confirm me on this.
1. Can an NRI ( non resident ) be appointed as MD of a pvt ltd co. if not , what if he satisfies to be resident by being present for 182 days?
2. For the appointment of MD in a public co , he needs be a resident and the explanation provides for being resident he needs be in India for previous 12 months continously.
Now if an NRI , non resident , is appointed as MD of a pvt co , whose articles are satisfied on this, and that pvt co gets converted into public , would the appointment of MD gets void.
would the MD be required to vacate the office of MD after conversion.
regards
neeta

 

Neeta,

 

1. No Doubt, a pvt company can appoint NRI as MD. coz sec 269 is not applicable to pvt company. and also the compliances required under Sch XII is not reqd to a pvt ltd.

 

2. As soon as the conversion from pvt ltd to public company gets effective, the company vll hv to follow sec269 & sch XII. so MD vll be disqualified & must vacate his office. and for new appointment of MD, the company vll hv to comply wid Sec269 & also Sch XIII if applicable.

 

3. wenever conversion is made, aoa of company is altered including the point of appointment of MD.

 

Adarsh

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