Can any one tell me whether Board Resolution is mandatory for appointment of Managing Director as CEO of the company.And also tell me under which provision it is mandatory that Board should pass resolution for appointment of CEO.
There is no section for the same. However as per standard secretarial practice such appointment must be considered as a subject matter of board meeting for the purpose of identification of MD as CEO.
Proper recording in the minutes is required otherwise in future any member of the board can challenge this appointment.
So it is advisable to route the same through a BM resolution.
CAclubindia
