TMI BlogManaging/Whole-time directors ‑ Whether a person initially appointed as additional/alternate director could continue as managing/whole-time directorX X X X Extracts X X X X X X X X Extracts X X X X ..... 09; Whether a person initially appointed as additional/alternate director could continue as managing/whole-time director 1. A clarification has been sought as to whether a person initially appointed as additional/alternate director could continue as managing/whole-time director. The terms director and managing director are defined in the Act. On the face of it, a managing director has f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the managing director, the latter appointment also ceases simultaneously with his cesser of directorship at the commencement of the annual general meeting. However, if such a person is re‑elected as a full‑fledged director at the annual general meeting and thereby he continues as a director of the company, he shall continue as a managing director also for the period for which he is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Government is subject to the approval of the annual general meeting; it is clarified in the Government s sanction itself. In any case, if the annual general meeting does not continue a person as a director approved by the Central Government for appointment as managing director for a particular period, say five years, after the expiry of, say one year, he immediately ceases to be the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Government is necessary. However, any provision in the articles of the company of the nature of continuing a person, appointed as a managing director, to remain as an employee after his appointment as a managing director ceases, will attract section 268 and approval of the Central Government will be necessary. No blank commitment can be given as to whether such a provision will be approve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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