Urgent query

436 views 2 replies

Hi,

1. Can an Individual be appointed as Managing Director in two Companies?

2. If yes, can he take remuneration from both the Companies?

Please quote relevant sections and rules, if any.

Thank You.

Replies (2)
As per section 269 ( 1) , a public company or a private company which is a subsidiary of a public company , having a paid up share capital of rupees five crores or more shall have a managing or whole -time director or manager. Therefore, a private company is not statutorily required to have managing or whole - time director or manager . A person cannot be appointed as a Managing or Whole -time Director unless he is already a director in the company . So Appointment of a non- director as a Managing or Whole -time Director cannot be made.
Part I of Schedule XIII of the Act, provides that a person can be managing director in more than one company , without the approval of the Central Government, provided he draws remuneration from one or more companies subject to the ceiling provided in Section III of Part II of Schedule XIII of the Act. Accordingly, subject to the provisions of Sections I and II, a managerial person shall draw remuneration from one or both companies, provided that the total remuneration drawn from the companies does not exceed the higher maximum limit admissible from any one of the companies of which he is a managerial person


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