banner_ad

md of company

229 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
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details