Appointment of director, mangaer nad chairman

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Aarya (Querist)
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25 September 2013 I am in the process of filling Form no.32 for the first time and I am facing problem in deciding the designation of directors.

(1) There are two directors who are also the promoters of the company.Can I designate both of them as Managing director cum Chairman.

(2) Can I designate both of them as Managing director cum executive director.

(3) Can I designate one of them as a Managing director and other as director + Manager.

Sorry for asking too many questions in one query. Urgent reply is appreciated.

CA Kapil Verma

CA Kapil Verma (Expert)
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25 September 2013 Its depend on what you client need to be designated.
for example if they want to be MD, then choose MD.

Ajay Mishra

Ajay Mishra (Expert)
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25 September 2013 Please confirm, you are going to incorporate company or it is an existing company.

It is public limited company or private limited company.

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Ajay Mishra

Ajay Mishra (Expert)
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25 September 2013
Prohibition on appointment of both the managing director and manager at the same time:

A company shall not appoint or employ at the same time both a managing director and a manager. Section 197A makes prohibition on appointment or employment of certain different categories of managerial personnel at the same time. The prohibition is applied to both a public company and a private company.

Contravention of section 197A makes a company liable to penalty under section 629A and the appointment will be invalid.

Aarya

Aarya (Querist)
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25 September 2013 Is it necessary to appoint manager or company secretary as details are required by form 32.

Can a director act as a company secretary and manager. There are total two director and company is yet to be incorporated.It is a Private limited co.

Ajay Mishra

Ajay Mishra (Expert)
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25 September 2013 Hi

You can not appoint company secretary/manager until and unless company is incorporated.

Firstly you appoint director for the incorporation of the company there after you do any thing.

You can not directly appoint manager or CS at the time of incorporation.

Aarya

Aarya (Querist)
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26 September 2013 Thanks Ajay ji. thank you very much. Sir, can you tell me that after the company is incorporated is it necessary to appoint company secretary or manager when the authorized and subscribed capital of the company is between 5-10 lacs.