What is the maximum no of companies in which a person can become
a. Managing Director,
b. Director
3 Replies
ViveK
(.)
(312 Points)
Replied 18 September 2010
Managing director
For private company there is no restriction
For public company not more than 2 without the approval of central government
Director
15 companies excluding :-
private company
section 25 company
foreign company
MD is also a director so if a person is MD in 2 public companies then he can be a director in 13(total 15) other public companies
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 18 September 2010
| Originally posted by : Kumar | ||
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ViveK
(.)
(312 Points)
Replied 18 September 2010
yes right, but with due respect, this section doesn't restrict managing directorship in private companies
For unanimous approval* of the board :-if he is seeking second appointment in a public company then an unanimous approval is needed even if the first company(in which he is appointed already) is private or public
*(unanimous approval means all the director present shall vote in favor of the decision and if even one member doesn't vote resolution can't be passed)
For govt approval :-for 2 or more public companies qovt approval is needed
and there is no restriction placed by section 316(the section is silent in this case) in case of private company if all the companies are private
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