Company XYZ Limited has considered appointment of MD in the Board Meeting held on 16 April, where as the effective date of appointment is 14 April. Is the said act justified? Can the co. go ahead with this?
Pls provide your valuable inputs.
Regards
Anshu
Hello Anshu,
Board has the power to appoint additional director, that additional director designated as MD but subject to the approval of shareholders. That means additional director work as a MD and confirmation will be given by shareholders of the company at GM.
In your case person who want to appoint as a director first he should give his consent and confirmation by BOD in the meeting and his date of appointment is 16th April not 14th April because BOD has only power to appoint director.
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