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Appointment of MD

Pankaj Sachar (CA Practice ) (44 Points)

15 April 2009

under clause 1 (e) of Schedule XIII, do you think that if the managerial person is a citizen and is also holding a valid Indian Passport but is not a resident as per number of days / months condition, is still required to obtain approval for his appointment to any managerial position like MD?

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3 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 15 April 2009

Dear Pankaj,

Kindly explain how can you say that such person is not resident in India as company law is silent about definition of resident in India. As far as explanation of clause (e) of Sch XIII is concerned it does not provide the definition of a person Resident in India.

If there is any definition in companies act, 1956 then please mention to proceed further in your query.

and i think use of Income Tax definition is also not a good idea in company law.

Regards

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Pankaj Sachar (CA Practice ) (44 Points)
Replied 15 April 2009

My understanding is as follows:

Schedule XIII says about resident in India. A person can be citizen of India but not the resident and vice -versa.

As per Schedule XIII person needs to be resident of India and not citizent of India for being appointed on the manegerial position.