Clarification Under section 316
A person already being the Managing Director of two public companies (Unlisted), now he has been appointed as the Managing Director of Independent Private Company, in this case whether sec 316 is violated or not ?
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Clarification u/s 316
Replies (2)
Dear Mr. S Sateesh Kumar
The Central Government may, by order, permit the appointment of a person referred as managing director in more than two companies, if it is satisfied that it is necessary that the companies should, for their proper working function as a single unit and to have a common managing director.
I think, there is no vialation of section 316.
Regards
Section 316 is violated if Your company didn't take the permission from the Central Govt.
Because your MD is already MD at two place.
Now for being MD at third place, approval has to be taken from Central Govt.
If you need further clarification than contact me.
Ankur Shah (Practicing Company Secretary)
“Guru Gautam” Bungalow, Inside Parshwa Tower,
Nr. Shyamal Cross Road, 132ft. Ring Road,
Satellite, Ahmedabad – 15
Contact: + 91-9427633901
E-mail: ankurjewel @ gmail.com
Blog: csankur.blogspot.com
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