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Is Managing Director compulsory

Mukundachar (CA) (43 Points)

13 September 2010

Dear All

Can you please let me know whether Managing Director compulsory for a public Listed company. If yes, please let me know under which section of companies Act

Thanks in advance

Regards

Mukund

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4 Replies

Ajay Mishra (Company Secretary) (74337 Points)
Replied 13 September 2010

Dear Friend

As per section 269 of the Companies Act, 1956, every public company and every subsidiaries companies having paid-up capital of Rs. 5 crore is mandatory to appoint Managing Director. In any other case you can appoint MD as per your management decision.

Regards

CS Ajay Mishra

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DIVYA JAIN (PCS) (24 Points)
Replied 13 September 2010

Hi Sir,

Greetings for the day.

I just had a glance at this query and wanted to confirm that in case where a MD is not compulsorily required to be appointed in an unlisted public co., is company required to file form 25 for reappointment of MD after 5 years??

And in such instance, i beleive that the terms and conditions of reappointment (i.e. compensation, perquisites etc. )would be as may be mutually agreed btwn the Co. and the proposed MD and not mandatorily be within the limits as prescribed under related sections and schedule XIII.

Your response in this respect would be a great help......early response awaited!!!!!!

regards,

Divya Jain

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 13 September 2010

Originally posted by : Mukundachar
	Dear All Can you please let me know whether Managing Director compulsory for a public Listed company. If yes, please let me know under which section of companies Act