Managing director

Dear All,

A private limited company had appointed its MD 8 years ago and every year in june they revise his salary but his term is not fixed so no reappointment is done every year. Now the new Act 2013 says that an MD cannot be appointed for more than 5 years. So my query is that should the company wait till june to fix his tenure when his remuneration is revised or should the company immediately fix up his tenure.

Thanks

 

 

Replies (1)

Though strictly speaking, he can continue as MD as per existing terms under CA 1956 until they are changed.  However, to be on safer side, it would be advisable to pass fresh resolution under CA 2013 and file return under new Rules.

 

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