Appointment of Managing Director

This query is : Resolved

amarendra Jena (Querist)
Follow

17 November 2010 Dear Members,

could any body guide me on the following issue:

a) Mr.A is whole time employee(Not Director) of XYZ Pvt Ltd company and also getting salary from this company .

b) ABC Pvt Ltd(Which is subsidiary of a Public company) wants to appoint Mr.A as Managing Director of the ABC Pvt Ltd.

Is there any violation of companies Act, 1956 ?

As per my concern companies Act, 1956 no where restrict for appointment.

If i m wrong please guide me

CS Amarendra

9505507591

Ankur Garg

Ankur Garg (Expert)
Follow

17 November 2010 According to me there is no problem at all in the appointment of Mr. A as MD of ABC Ltd.

Plz note section 269 is applicable to ABC Ltd bocz it is subsi of a public company.

His association as whole time employee with XYZ Ltd does not make any difference as long as he is capable of discharging his duties as MD of ABC Ltd.

Regards

udit sharma

udit sharma (Expert)
Follow

18 November 2010 Hi....

Agreed with Ankur Sir but have a point to make here!

Mr.A first has to be appointed as a Director of ABC Pvt. Ltd. and then only he can be appointed as the Managing Director of the same company! Kindly go thorugh the section 2(26) of the Companies Act, 1956 which defines the term and it provides that a Managing Director means a Director..........

Hence, Mr. A should be first appointed as a Director of ABC Pvt. Ltd. and then can be appointed as Managing Director!

This is my opinion and views of other experts are welcome:-0

Best Regards

Udit Sharma

Upgrade to CAclubindia Pro. Subscribe Now!

amarendra Jena

amarendra Jena (Querist)
Follow

18 November 2010 Thanks to Mr.Ankur Sir and Mr.Udit sir for reply

Thanking You

Amarendra