23 March 2011
Board cannot appoint the M.D/ Director with retrospective effect by ratifying the appointment. Reason behind this interpretation is proviso to sub section (3) of section 317.
23 March 2011
Strictly, No appointment can be made with retrospective effect.
Practically, Appointment is made with a back dated resolution and the procedural compliance is done in current date with additional fees. Which means the appointment is not retrospective but there is only a procedural failure in giving intimation at the right time.
In my view, Proviso to 317(3) refers to a situation in which the re-appointment is prohibited two years prior to the date of termination of the current tenure.
23 March 2011
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