Sec 316

Dear Friends,

As per Company Act , A person can not be appoiented as a managering director in more then one company in the same time. However he can be appoiented as managering director of  another company only if all other directors are agree for the same and only after obtaining the approvel of central government. A person can not hold the office as a MD in more then two companies in thre same time except if CG is satisfied that it is necessary for the better performence of companies to appient a person as MD in two or more companies.on the basis of above explanation it can be said that CG approvel is required for appointment.

Regards,

Ankit kansal

Sec 316 provides that a MD of a Public Co can be a MD in one more Co that can be a Pvt or Public Co.

A person can be a MD in n No of Pvt Co's, no restriction.

But a MD of a public Co cannot be a MD in more than 2 Co's.

In Q No.3 raised by Nirmala; when a person who is a MD in 1 public Co and 1 pvt Co is appointed as a MD in another pvt co then the provisions of Sec 316(2) are contravened in respect of his appointment in a public co and hence he has to choose to vacate from that public co are 1 pvt co.