TOPIC 6: QUICK REFERENCE TO “Managing Director”

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Quick Reference to " Managing Director" :-
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Legal Provision:-
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Section 2(54), 196, 203 of Companies Act, 2013.
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Points:-
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1. Managing Director means a Director who is entrusted with Substantial Powers of Management.
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2. Managing Director may or may not be considered as whole time employee of the Company.
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3. The MD on his ceasing to be director will automatically cease to be the MD as well.
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4. Managing Director much be director.
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4. Form DIR-12 and MGT-14 is required to file with ROC.
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5. Sometimes MD is also known as President, Chief operating officer.

6. A company shall not have both MD as well as Manager at the same time.
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7. MD can be appointed through Board Resolution, General meeting Resolution, Agreement.
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8. Basic administrative acts of routine nature are excluded from powers of MD.
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Regards
ACA SOURAV BAGARIA