Appointment of MD at the time of Incorporation Co.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2011 The question is whether the private company at the time of its formation i.e. incorporation can appoint a person as MD. A person could be appointed as MD by the articles of association too in terms of section 2(26). In private limited company, a person could be appointed for more than five years - even for life so long as the company remains a private company. Remuneration to MD could be fixed and changed from time to time. With regard to efiling, at the time of first filing of form 32 also, the appropriate choice could be clicked instead of director as Managing Director. If it is not available, file first as director prior to incorporation and then as MD may be immediately after incorporation.

udit sharma

udit sharma (Expert)
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18 February 2011 A private Company is not mandatorily required to appoint a Managing Director. However, a Private Company may, subject to and in accordance with the provisions contained in the AOA of the Company appoint a Director as Managing Director.

However, as per the definition of the term Managing Director as provided in section 2(26) of the Companies Act, 1956 a person has to be first appointed as a Director of the Company and then can be appointed as MD.

IN my opinion at the time of incorporation, a person cant be directly appointed as MD of the Company. First he has to be appointed as Director and then as MD.

Experts ur views please....

God Bless

CS Udit Sharma