Appointment of md & company secretary

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Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2012 Dear Members..

In case of Public Company, if paid up capital is increased upto 5 crores or more, then appointment of Managing Director and Company Secretary is mandatory...

What is the time period within abovesaid appointment required to be made???

Ajay Mishra

Ajay Mishra (Expert)
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06 September 2012 Hi

For, Managing director, section 269 of the Companies Act, 1956, relating to appointment of Managing Director will be applicable immediately.

In case of Company Secretary, the time period for appointment, is maximum one year from such increase.

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2012
thanks for your reply sir...

Can u please refer the source where it is mentioned that the time period is maximum One year after increase in paid up capital beyond the prescribed limit...

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Ajay Mishra

Ajay Mishra (Expert)
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06 September 2012 Hi

APPOINTMENT OF COMPANY SECRETARY
(Section 383A & Companies (Appointment and Qualifications of Secretary) Rules, 1988)

1 Every company having paid-up share capital of not less than Rs. 5 Crores shall have whole time secretary [Rule 2(1)].

2 Where the paid up share capital is increased to Rs. 5 Crores or more, the Company shall appoint whole time secretary within a period of 1 year from the date of such increase [Proviso to Rule 2(4)].

3 A company having a paid up share capital of less than Rs. 2 Crores may appoint any individual, possessing qualification specified in Rule 2(4), as its whole time secretary to perform duties of secretary, and any other ministerial or administrative duties [Rule 2(3)].

4 A company having a paid up share capital of Rs. 2 Crores or more but less than Rs. 5 Crores may appoint any individual who is member of ICSI, as a whole time secretary [Rule 2(3A)].

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2012 Sir, what about MD appointment.... as section 269 of the Companies Act, 1956 is silent about appointment of MD with immediate effect..then is it means MD may be appointed at the time of increase in paid up capital upto or more 5 Crore and may also be appointed later on ??

Guest

Guest (Expert)

06 September 2012 MD can be appointed later on also after increase of capital but within reasonable time.