Pankaj jhunjhunwala (CA) (97 Points)
17 May 2014one of my client appointed managing director on 1.10.2011 for period of 15 yrs in private ltd company.
my query is that
wheather balance period of tenour will continue of M.D ON 1.04.2014 WILL CONTINUE UPTO HIS TENURE AS PER AGGREEMENT. OR REVISED AGGREMENT PREPARE ON .1.04.2014 TO COMPLIANCE THE 196 OF COMPANY ACT 2013.
HE IS ALSO GETTING SALARY AS PER OLD AGGREEMENT.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 18 May 2014
In my view, he can continue as per existing terms. Sec.196 will apply only at the time of his reappointment. Only point is that you should ensure that he is not disqualified u/s 196(3) since there the words 'continue the employment' has also been added.
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 19 May 2014
Agree with Agrwal Sir....it will have to be considered only at the time of appointment/reappointment...
CAclubindia
