Change in Designation

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sohail (Querist)
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28 November 2010 while passing a resolution is it compulsory to mention the period of service and whether MD can not be appointed permanantly

udit sharma

udit sharma (Expert)
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29 November 2010 Hi..

As per the provisions of section 317 of the Companies Act, 1956 a Director can be appointed as a Managing Director for a term not exceeding 5 years at a time.

Yes, the resolution appointing the MD should specify the period for which he is appointed as such, and

provisions of section 317 are not applicable to an Independent Private Company, hence a Private Company which is not a subsidiary of a public company can appoint a Director as MD for a period exceeding 5 years at a time....

Hope this solves your query

God Bless

Udit Sharma