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New act, 2013:md appointment

02 April 2014

Hello Professionals,

Kindly tell me the procedure for the appointment of MD in a private company as per the new Act? Are there any restrictions as to the remuneration,term and the number of companies a person can be an MD in as per COmpanies Act 2013?

Please help.

Thanks.

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1 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 02 April 2014

As per rules notified u/s 203, no private co. is required to appoint any KMP including MD. However, if it appoints MD voluntarily, it will have to follow provisions of Chapter XIII of the Act read with Schedule-V. As per Sec.203(3) a person can be MD in maximum 2 companies.