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Managing director

Viral Thaker (Company Secretary) (78 Points)

12 December 2011

Dear All,

can any body give me the detail procedure or Check List If foregin person appointed as a Managing Director in Public Limited Company (Unlisted Entity).

Regards,

Viral

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2 Replies

Preet Kanwar Singh (Company Secretary) (161 Points)
Replied 12 December 2011

ppointment of foreign nationals as whole-time director or managing director in a public limited company is subject to the provisions of Section 269 of the Companies Act read with Schedule XIII to the Act that defines qualification for appointment and ceiling limits of remuneration. A foreign national could have different residential status under the companies Act, FEMA and the income-tax law. The varied residential status in these laws have different legal effect concerning employment, repatriation and taxation. `Resident' for the purposes of Part I of Schedule XIII (Companies Act) includes a person who has been staying in India for a continuous period of not less than 12 months preceding the date of appointment as a managerial person and who has come to India ( 1) for taking up employment in India, or (2) for carrying on a business or vocation in India. Appointment of any person who is not a resident in India requires the approval of the Central govt. Most often, appointment of a foreign national as a managerial person may require the Centre's approval either because he is not a resident or his remuneration exceeds the limits prescribed under the Schedule XIII.

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