Query regarding md apppointment

MD was appointed in a private limited Co. at annual salary of Rs.1750000/- ( monthly Rs.145833/-) for term of 3 years starting from 29/05/2010 and the term will end by 28/05/2013 

Subsequently the co. converted in to pub. ltd co. w.e.f. 9/11/2010

RELEVENT INFOMATION:

1. Date of incorporation - 13/08/2009 ( AS A PVT. LTD)

1. From the date of appointment of MD , the co. has no profits (as the commercial opperations of the co. yet to start)

2. At the time of appointment the co. paid up capital was Rs.140000/-

3. now ( 12/09/2011) the paid up capital of the Co. is Rs.368074200/-

QUERY:

1. whether the co. need  to comply the provisions of section 269 /schedule -XIII of the CA,1985

 if  the MD conitinues with the same salary and tenure i e. up to 28/05/2013

THE  VIEWS OF EXPERT EMBERS SOLICITED

Thanks

CS KRISHNA.CH

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