can a CMD of a listed co. be appointed as MD of a pvt. ltd. co.?
can he draw remuneration from both the co.? does schedule XIII permits such a remuneration in pvt. co.?
request to reply at earliest.
ars (CS) (445 Points)
18 October 2013can a CMD of a listed co. be appointed as MD of a pvt. ltd. co.?
can he draw remuneration from both the co.? does schedule XIII permits such a remuneration in pvt. co.?
request to reply at earliest.
CA Ashish Lodha
(Chartered Accountant)
(184 Points)
Replied 18 October 2013
A public company or a private company which is a subsidiary of a public company may appoint or employ a person as its MD, if he is already the MD or manager of one & not more than one other company.
Condition
1. Unanimous board resolution required.
2. Special Notice required.
3. Approval of central Govt.
4. Remuneration can be drawn from both companies without approval of CG, subject to ceiling limit of Section III of Part II of Schedule XIII of the Companies Act.
Note : Section 316 does not apply to a private company.
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