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2015 (8) TMI 90 - HC - Companies LawSetting lower and upper age limit for appointments and 'continued employment' of Managing Directors – Section 196(3)(a) of Companies Act, 2013 - Whether person attaining age of 70 was eligible for continued employment – Held that:- Vested right would arise only if Appellant had actually been appointed – Merely because additional eligibility condition was laid down, it does not mean that any vested right of Appellants was affected, nor does it mean that Regulation laying down such minimum eligibility condition would be retrospective in operation – On closer reading of Section proviso tells us age of 70 is not an absolute bar – Public limited company may well appoint person of 80 years of age as Managing Director; all that is needed is special resolution – Clearly in view of sections 196, 269(2) and 267, there was no 'discontinuance' of Managing Directorship at age of 70; section applied only to his appointment (and that includes his reappointment) – Section 196(3) does not interrupt appointment of Managing Director where at date of such appointment or re-appointment Managing Director was below age of 70 years but crossed that age during his tenure – Word 'continue', therefore, must be read contextually – Decision in the case of P. Suseela & Ors. v. University Grants Commission & Ors. [2015 (8) TMI 69 - SUPREME COURT] followed - Decided against Appellant.
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