@ mishra sir,

Here the question is not about the appointment of alternative director ,

it is if a director was appointed as MD for a tenure of 5 years and his office comes to an end by Sec 255/256 , if the company is a defaulting company, whether the retiring director can be re appointed in the same copmany.

And office of MD is Co-terminus with that of office of director. If the office of director comes to an end , his apointment of MD or WTD also comes to an end irrespective of the tenure of appoiintment.

Dear Bhargava

Can please you can give the answer of the following:

1.    You have appointed MD as rotational director.

2.    How the tenure of MD is comes to end u/s 255/256

3.    Have you appointed alternate director

4.    Whether company is in default u/s 274(1)(g).

Regards  

Mishra sir,

1.the appointment of MD is made under sec 269 and his tenure can be upto max 5 years.THe tenure to continue as MD is irrelevant with the tenure of office of director.Ex.If a additional director was appointed as MD and who hold the office of director till the commencement of next AGM,though if his appointment of MD is made for 5 yrs. he cant hold that since at the commencement of AGM, he is not at all a director and if was not re appointed U/sec 257 route , the office if MD also comes to an end.

But if the director who was liable to retire U/sec255/256(who is an MD) is again re appointed in the same AGM, then though his appointment of MD comes to an end with that of directorship, but as he was once again appointed as director , then no fresh appointment for 269 is required .this is a Dept.Clarification.

2.Tenure of MD doesnot comes to an end until he has been removed.Sec 255/256 is not concerned for the MD, but if the director who   , holds the office of MD, retire in the AGm and if he was not reappointed , his office of MD also comes to an end. As office of MD is co-terminus with that of director.

3.Until the above discussion , I did not refered any alternative director concept. I told that there is no concept of fixed tenure in the companies to  any director (not the office of MD or WTD) other than Sec 265 director or the director appointed by CG or PFI .

4.sir, can you fully complete the 4th que.

Regards,

Originally posted by : Ajay Mishra
	Hi The question would not arise. A managing director is not expected to be away from the State in which the meeting are held. Section 313 provides for the appointment of an alternate to a director and not to a managing director. Regards

Mishra Sir, infact the original  question which i raised was about sec274(1)(g).and not about alternate directors or alternate to MD...

Originally posted by : bhargava
	@ archana  Mam, I think there is some mistake in the Munish bhandari , because ar per the provision it is "any other company" I have referred that in the munish bhandari hand book and also the companies act. As per the provisions of Co's Act the director of the defaulting company can be re appointed in the defaulting co.. for the supportings refer my earlier entry

i think we have to follow this.

page no 21 , handbook, seventh edition feb 2010, where it is written

any director (wheather rotational or non rotational ) may be appointed as MD or WTD. where a rotational director is appointed as MD orWTD, bt his term of office is fixed, he shall retire as per the provision of sec 255 and 256 even if his term of office has not been expired. in such a case , he may continue as an MD or WTD, if he is reappointed after retirement.

I just gave the page no to clarify tht director can be appointed for a fixed tenure..

As i understood this topic, if a director become disqualified as per sec 274 (1)(g) , he may be reappointed in the same co , if he retires by rotation ,bt his tenure doesnt come to end. If once his tenure ends he will nt be qualified for reappointment in same public co due to disqualification occurs.

@ archana mam,

fron the note u have written ,

The Fixed tenure is for the office of MD and not that of the director.

There the tenure is to be the MD if before the tenure  he was retired U/sec 255/256 , and again he was not re appointed , his office of both MD and director comes to an end.

More over the tenure u r refering is for the MD not that of Director.

an MD is an executive director who is assigned significant powers of control. 

Originally posted by : Ankur Garg
	Please do not misinterpret..... For this purpose re-appointment has two meanings.... 1. Re-appointment in running i.e. re-appointment after rotational retirement etc 2. Re-appointment cum re-joining after quitting the company through resignation or some other mode. In first case Re-appointment in the defaulting company is allowed bcoz this public company does not qualify for the words "other public company" bcoz here defaulting director is almost continuing his employment after the formal rotational retirement. In second case appointment in the same defaulting company is not possible bcoz now this public company qualify for the words "other public company" and he is re-joining the company.   Regards

sir, well explained....this will do.really it helped me a lot.thank you sir

Originally posted by : bhargava
	@ archana mam, fron the note u have written , The Fixed tenure is for the office of MD and not that of the director. There the tenure is to be the MD if before the tenure  he was retired U/sec 255/256 , and again he was not re appointed , his office of both MD and director comes to an end. More over the tenure u r refering is for the MD not that of Director. an MD is an executive director who is assigned significant powers of control.

what bhargava said is right..and its well explained in Munish Bhandari's text..i think so..