Deepali (student) (9 Points)
17 April 2018Our company is a Private Limited Company and appointed MD &WTD as per provisions of Companies Act, 1956 where there was no maximum duration of appointment. Now since the Company Act, 2013 is largely in force. Whether our company is required to reappoint MD/WTD( 5 years had been passed) or the previous appointment will be continue? Please suggest.
Jatin Bajaj
(CS)
(2928 Points)
Replied 17 April 2018
As per the provisions of Companies Act 1956, there were no maximum duration for appointment of managing or whole time director of the Company. But as per Section 196 (2) of the Companies ct 2013, no Company shall appoint or re-appoint any person as its managing Director or whole time Director for a period exceeding 5 years. So, Company has to appoint the managing Director for a period of 5 years from April 2014 and such Managing director shall hold the office for the period of 5 years till 2019. Previous appointment will not continue. However Provisions of Section 196(4) and (5) is not applicable on private Company, So such managing director shall not be regularized by passing special resolution in General Meeting.
Deepali
(student)
(9 Points)
Replied 18 April 2018
Which form is to be filed for reappointment of MD after 5 year by private company?
Jatin Bajaj
(CS)
(2928 Points)
Replied 18 April 2018
For re-appointment of Managing Director, Just pass the Board resolution for re-appointment of Managing Director and file form DIR 12 within 30 days of re-appointment along with CTC of Board Resolution.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 18 April 2018
CAclubindia
