banner_ad

md of company

Others 244 views 5 replies
is there any cooling period for reappointment of md of company
Replies (5)

no cooling period as such, but no re-appointment shall be made earlier than one year before the expiry of the term.

what is the logic of 1year and explain it with an example

read section 196 co co. act 2013

MD enjoys the highest position in the BOD. He is entrusted with all the major responsibilities for the smooth running of the business. Hence the law wants the shareholders to watch and analyse the performance of the MD for the four years and then to take a judicious decision whether to reappoint him again or not. The provisions of sec 196 protects the shareholders from taking any hasty decision regarding reappointment. In other words even the Md is prohibited to manipulate with the decisions of shareholders by showing good performance in the initial years and securing a reappointment for himself well before the end of his tenure.

Disclaimer: This explanation is my own logical thinking and has not been taken from any secondary source.
thanks sudipta it's satisfactory answer


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details