Is the tenure of MD in a Listed Company is prescribed in any section or we can make for as long as we want????
Please reply if any one knows about it. Its quite urgent.
Thanks & Regards,
Vineeta
Vineeta (Company Secretary) (38 Points)
31 December 2009Is the tenure of MD in a Listed Company is prescribed in any section or we can make for as long as we want????
Please reply if any one knows about it. Its quite urgent.
Thanks & Regards,
Vineeta
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 31 December 2009
A person can be appointed as a managing director in a public company for a maximum period of 5 years.
MD can may be reappointed or his term may be extended. However, the term of reappointment or extension shall not exceed 5 years.
[Sec. 317 of Company Act, 1956]