COMPANY ACT

It is Considered as Foreign Company........

hi,,

m a student of cs ececutive program,,,,,m a having a doubt regarding d concept of directors,,,      plz tell if a director(rotational) is appointed as a M.D by virtue of an agreement b/w him n d co.,,,,,.. with a tenure of 5 years,,,, bt as a rotational directr, he his liable to ritire  n he is not reappointed,,,,.. so what will happen to that agrrement will it be over \or will remain valid,,, will he get compensation ,or what in that case....also memtion sec no  .. plz   \

teejay    email id   tarundd_2007 @ yahoo.com

If 100 % capital is held by the Foreign Company than it  cannot be treated as Subsidiary of Public Company [Refer Section 4(7)]

Hi Teejay,

Regarding MD liable to retire by rotation.

His tenure of 5 years will not be interuupted by his retiring at AGM as it is procedural.

But if he is not reappointment on retirement due to whatever reason he cease to be Director and thus he ceses to be MD. As for appointment of MD he should be director of the Company [ Section 2(26)]. Thus agreement will be terminated from the dt of his cessesing and he will not be entiled to any remuneration as MD from that date