Additional Director Cum MD

This query is : Resolved

CS Richa Sharma (Querist)
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16 September 2010 Can a Company Appoint A person as an Additional Director and MD on same day?and in same meeting?
PLZ reply ASAP.

SANJAY TALATI

SANJAY TALATI (Expert)
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16 September 2010 Yes. In the same meeting the Board can appoint the person as an additional director. After the business of addl. director, the Board should take up the business of appointing that person as MD. However, the approval of the Members in the subsequent GM is to be taken . Also check up whether the the remuneration to be paid to him is whin the limit of Schedule XIII. Further, the addl. director retires at the immediately due AGM. Hence, in the AGM , he should be appointed as a regular director and then only he can contine as MD.

Ankur Garg

Ankur Garg (Expert)
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16 September 2010 Yes. It is 100% possible.

First agenda would be appointment of AD.

Second agenda would be appointment of AD as MD.

But keeping in view DCA clarification do not forget to regularise AD in the next AGM.

Revert if there is any doubt

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