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  • Note On Appointment of MD

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    Pratique Secretarial
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    The document discusses the appointment of a managing director for a company. It states that a managing director can be appointed by the articles of the company, an agreement, or a board or shareholder resolution. A company cannot have both a managing director and a manager employed at the same time. Managing directors, whole-time directors, and managers can be appointed for a maximum term of 5 years, and reappointments must occur within the last year of the current term. Appointees must be at least 21 years old and below 70 years old, though those over 70 can be appointed with a special shareholder resolution.

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    Note on Appointment of MD (1)

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    The document discusses the appointment of a managing director for a company. It states that a managing director can be appointed by the articles of the company, an agreement, or a board or shareholder resolution. A company cannot have both a managing director and a manager employed at the same time. Managing directors, whole-time directors, and managers can be appointed for a maximum term of 5 years, and reappointments must occur within the last year of the current term. Appointees must be at least 21 years old and below 70 years old, though those over 70 can be appointed with a special shareholder resolution.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    8 views1 page

    Note On Appointment of MD

    Uploaded by

    Pratique Secretarial
    The document discusses the appointment of a managing director for a company. It states that a managing director can be appointed by the articles of the company, an agreement, or a board or shareholder resolution. A company cannot have both a managing director and a manager employed at the same time. Managing directors, whole-time directors, and managers can be appointed for a maximum term of 5 years, and reappointments must occur within the last year of the current term. Appointees must be at least 21 years old and below 70 years old, though those over 70 can be appointed with a special shareholder resolution.

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    of 1

    APPOINTMENT OF EXISTING DIRECTOR -AS MANAGING DIRECTOR

    1. Managing Director can be appointed by virtue of the articles of a company or an


    agreement with the company or a resolution passed in its general meeting, or by its
    Board of Directors.
    2. No company shall appoint or employ at the same time a Managing Director and a Manager.
    3. MD, WTD and Manager can be appointed for maximum tenure of 5 years.
    4. Re-appointment cannot be done earlier than one year before expiry of the term. This
    means, company may re-appoint them for next term in last one year of current term.
    5. The minimum age for appointment is 21 years to normal retirement age is 70 years.
    However, a person who has attained age of 70 can be appointed on passing Special
    Resolution in General Meeting with proper Explanatory Statement with proper
    justification.

    Procedure for Appointment of Managing Director: (below age of 70 years)


    1. Issue Notice for Calling Board Meeting.
    Notice shall include:
    a. Terms and conditions of such appointment.
    b. Remuneration payable to such Managerial Personnel.
    c. Interest of Directors in such appointment.
    Documents required from Appointee:
    a. Consent that he is willing to be appointed as Managing Director.
    b. MD Agreement, if required.
    2. Pass Resolution in Board Meeting:
    a. for appointment of Managerial Personnel.
    3. File Form DIR-12 and Form MGT-14 within 30 Days of passing of Resolution.

    **************************************END**********************************

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