LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Re-appointment of managing director under schedule xiii

Dipika Verma (Company Secretary) (174 Points)

19 June 2012

If we are appointing a Managing Director or a Whole Time Director as per provision of Part I of Schedule XIII of the Companies Act, 1956, is there any criteria:

that the Company has not made any default in repayment of any of its debts or debentures or interest payable thereon for a continuous period of 30 days in the preceeding financial year.

Reply
Follow
Share

4 Replies

CS SIDDHARTHA BANIK (COMPANY SECRETARY) (771 Points)
Replied 20 June 2012

Hi,

If the company does not have profit or inadequate profit, then it should pay managerial remuneration in accordance with Schedule XIII. Section II of Part II of the schedule provides some criteria for payment of remuneration in case of inadequacy of profits. One of the criterion is the same as you have mentioned. Please visit the schedule along with the amendments.

Thanks,

Dipika Verma (Company Secretary) (174 Points)
Replied 20 June 2012

What If we are appointing a Managing Director or a Whole Time Director with NIL remuneration as per provision of Part I of Schedule XIII of the Companies Act, 1956, in that siyuation is there any criteriain Part I of Schedule XIII:

that the Company can appoint MD or WTD as per Schedule XIII if it has not made any default in repayment of any of its debts or debentures or interest payable thereon for a continuous period of 30 days in the preceeding financial year.

sangram ghatge (company secretary in practice) (198 Points)
Replied 20 June 2012

dear dipika,

part I of schedule XIII has no such provision as :

if it has not made any default in repayment of any of its debts or debentures or interest payable thereon for a continuous period of 30 days in the preceeding financial year.

regds,

sangram 9422622828.

CS SIDDHARTHA BANIK (COMPANY SECRETARY) (771 Points)
Replied 20 June 2012

Part I of Schedule XIII provides some criterion which an Individual (not the Company Concern) should posses to be eligible for the post of MD/WTD. Therefore, it is obvious that it does not contain any such clause as you have mentioned because the disability you have mentioned is on the Company’s part only. Thanks,

1 Like