Section 196: Appointment of managing director, whole-time director or manager

Section 196: Appointment of managing director, whole-time director or manager · Complied AI

Notes, amendments & references (9)

2 ) No company shall appoint or re-appoint any person as its managing director, whole-time director or manager for a term exceeding five years at a time: Shall not apply to a Government Company. vide notification no.G.S.R. 463(E) dated 5th June, 2015.

(The exceptions, modifications and adaptations provided above shall be applicable only to those Government Companies which has not committed a default in filing its financial statements under section 137 of the said act or annual return under section 92 of the said act with the registrar, vide notification dated 13th June, 2017)

To view the notification, Click Here

Provided further that Inserted vide Companies (Amendment) Act, 2017 dated 03.01.2018 effective from 12.09.2018. To view the notification, Click Here

4 ) Shall not apply to a Government Company and Private Company and specified IFSC Public Companies vide notification no.G.S.R. 463(E) and G.S.R. 464(E) dated 5th June, 2015 and GSR 08(E) dated 4th January, 2017 respectively.

(The exceptions, modifications and adaptations provided above shall be applicable only to those Private Companies which has not committed a default in filing its financial statements under section 137 of the said act or annual return under section 92 of the said act with the registrar, vide notification dated 13th June 2017)

Substituted vide Companies (Amendment) Act, 2017 dated 03.01.2018 effective from 12.09.2018. To view the notification,To view the notification, Click Here

Refer rule 3 and Form No.MR-1 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,2014. To view the rule, Click Here

5 ) Subject to the provisions of this Act, where an appointment of a managing director, whole-time director or manager is not approved by the company at a general meeting, any act done by him before such approval shall not be deemed to be invalid. Shall not apply to a Government Company and Private Company. vide notification no.G.S.R. 463(E) and G.S.R. 464(E) dated 5th June, 2015 respectively .