Hi Guys …
I have a question in respect of one public company which is formed in accordance with state govt guidelines. As it is formed like this, all the directors are ex-officio means they get appointed by virtue of their position held in state govt or local municipality.
Chairman and Managing Director [CMD] of such company is on leave for a month and he has taken necessary approval from state govt. Now, state govt has issued a letter to the company stating that in absence of CMD, Joint MD (which is officer of company and not the director) will handle the office of CMD. Joint MD will have only administrative powers and not the signatory authorities neither he can take any policy decisions.
Now my question whether it is change in office of CMD and whether resolution is required to be passed for this?
In my opinion – in all this entire proceedings, nowhere Board of Directors of company is involved, plus, Joint MD will have only administrative powers, hence no separate resolution is required. Am I right?
CAclubindia
