I have some doubts regarding reappointment of Managing Director. Kindly Provide solution if know:-
Note:- My company is a public ltd. company and it does not fulfill the requirement of sch-XIII. (Loss making company and a default is also made timely payment to a bank)
1 Whether i have to file form 23 and form 25C in case of reappointment also. Suppose i did not comply the provisions what are its consequences.
2 Can my company continue to give remuneration on reappointment of Managing director whereas it does not comply the provision of Sch. XIII.
3 One of director is rotational retiring director. Whether special resolution in this case also is required or just ordinary resolution is sufficient.
22 February 2010
Please understand this is a serious matter. Remuneration to MD without complying with the provisions of the ACt will have serious repurcussions not only on the Company but also on the individual director.
In case of reappointment of managing director what provisions will applicable on their remuneration. Whether company continue to give same remuneration as to previous remuneration given or in case of REAPPOINTMENT ALSO SCHEDULE XIII WILL BE APPLICABLE.
Please note my COMPANY DOES NOT COMPLY THE PROVISION OF SCHEDULE XIII CLAUSE REGARDING REMUNERATION AND ON REAPPOINTMENT OF MANAGING DIRECTOR WE ARE PAYING REMUNERATION BY PASSING ONLY A RESUOUTION.
I would like to draw your kind attention towards the explanation given at the end of section 269. This explanation says--appointment includes re-appointment.
it means re-appointment of MD/WTD is equal to appointment a fresh.
CAclubindia
