Re-appointment of managing director under schedule xiii

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If a Company had defaulted in repayment of its debts and such default continues for a period of 30days, in that situation can a Listed Public Company Re-appoint its Managing Director with NIL Remuneration as per the applicable provision of Part I of Schedule XIII?

Replies (4)

Yes...company can appoint MD

Whether there is any criteria in Part I of Schedule XIII that the Company can re-appoint MD without remuneration if it has not made any default in repayment of any of its debts (including public deposits) or debentures or interest payable thereon for a continuous period of thirty days in the preceding financial year?

Hi,

 

Section II of part II of Sch XIII.

Ceiling limit specified in point 1 are applicable in case company has not made default in repayment of its debts for a period of 30days in preceding FY.

 

In your case, such default prevails hence you can not pay remuneration in this case.

 

Restriction is on remuneration in part II. There is no bar on appointment/reappointment.

 

With Regards,

 

CS Neha Jain 

 

The Company can reappoint on remuneration as well..

 

But Part II of Section II of Schedule XIII should not be applicable on remuneration.

 

 


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