06 June 2011
A MD is generally appointed by the company's BOD which is generally authorised by the articles..In NELSON V JAMES NELSON SONS it was decided that unless there is power given to BOD by article to apoint MD, it is not competent for them to make appointment.....however sec 2(26) expreselly authorise BOD without requiring provision in articles. If the article vest the power in the shareholder the appointment must be made by shareholder.. Sumat Singhal
CAclubindia
