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Removal of managing director of a pvt. ltd company

Pvt ltd 529 views 1 replies

Vikas Khanna

Partner

39 Points Joined February 2012

Dear Experts,

There is a Pvt. Ltd Company, whith three share holders A (18%), B(5.5%), & C (76.5%). All are full time directors in the said firm, while "A" is the Managing Director since last 20 years. Now "A" & "B"have crossed 70 years od age.

My question is how to remove "A" from the position of MD to a non-executive director, and simultaneously appoint "C" as the new MD? "A" may not like this and may offer resistance, while "B" is cooperative. Please provide me with the correct legal procedure to do the same.

Thanks,

Replies (1)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

Section 196(3) of CA 2013 reads as under:

"(3) No company shall appoint or continue the employment of any person as managing director, whole-time director or manager who —

(a)		is below the age of twenty-one years or has attained the age of seventy years:
		Provided that appointment of a person who has attained the age of seventy years may be made by passing a special resolution in which case the explanatory statement annexed to the notice for such motion shall indicate the justification for appointing such person;"