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Managing Director of a Private Limited Company

11 December 2021

what is the procedure for appointment of a person who is already a Managing Director of a private limited company to be appointed as Managing Director in another private limited company? Can anyone share the resolution.? Is MGT-14 compulsorily required to be filed?

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3 Replies

sabyasachi mukherjee (27574 Points)
Replied 11 December 2021

Salini ,
pvt. limited companies are not required to file mgt 14 for the purpose mentioned in Sec 179(3) and rule 8 of the companies act 2013.

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Tanuj Chandra Saxenaa (Company Secretary) (7075 Points)
Replied 12 December 2021

Yes An individual can be a managing director of two companies, but an individual cannot be a whole-time director of more than one company.

No need to file spl resolution in form mgt14 as it is exempted from pvt Ltd companies as per rule 8 and section 179 (3) of cos act 13.

Chirag (Professional) (1979 Points)
Replied 12 December 2021

There is no concept of MD/WTD in private companies and Schedule V + 197 is not applicable so MR -1 is not required and not any approval of Shareholders for payment of remuneration and with just board resolution you can change designation ,but it's recommended to file DIR -12 &MGT -14 for Board resolution.

MD or Whole Time director can become MD/WTD only in subsy u/s 203(3)