10 May 2011
as per definition, MD should be a Director in first place, then only he can be appointed as A MD, So my question is, is it necessary for appointing him as a Director/additional Dir. at first instance & then as A MD...please clarify
Guest
Guest
(Expert)
10 May 2011
Initially, appointment concerned person as a director,Propose him as a MD in Board Meeting, meantime call for GM & get the approval. Appointment him as a MD & file Form 25C.
my question is whether the concerned person needs to be appointed as a Director first & then as MD, that too in the Board Meeting only. whether I can appoint him Directly as A Managing Director ?
11 May 2011
If it's a private company a person can be appointed as MD directly by passing a Board Resolution.
In the case of a public company, first you have to appoint him as additional director designated him as MD and then after confirmation of his appointment as MD in the GM, he is to be regularised as Permanent Director designated as Managing Director.
11 May 2011
In my opinion as per the definition of 'managing Director' provided under the Companies Act, 1956, a person first has to be inducted as Director and then designated as Managing Director.
So, even in case of a Private Company, first a person has to be inducted as a Director on the Board of Directors of the Company and then can be designated as Managing Director.
CAclubindia
