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Answer the following question: Explain the Managing Directors. - Secretarial Practice

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प्रश्न

Answer the following question:

Explain the Managing Directors.

संक्षेप में उत्तर

उत्तर

(1) Meaning: A Director who is appointed from amongst the Directors as a Chief Executive Officer and entrusted with the substantial powers of management in addition to the routine administrative powers is called a Managing Director.

(2) Definition: According to Section 2(26) of the Companies Act, 1956, “Managing Director is a Director who has been entrusted with substantial powers of management under an Agreement or by a resolution passed by the company at its general meeting or by the Board of Directors”.

(3) Appointment: In terms of Section 2 (26), a Managing Director can be appointed in any of the four ways, namely: (a) By virtue of an agreement with the company, (b) By virtue of a resolution passed by the company in general meeting, (c) By virtue of a resolution passed by the Board of Directors, (d) By virtue of Memorandum/Articles of Association. The appointment is subject to approval by resolution at the next general meeting. According to Section 269(1) of the Companies Act, it is compulsory for a public company (or a private company which is a subsidiary of a public company) having a paid-up share capital of Rs 5 crores to appoint a Managing Director or Whole-time Director.

(4) Term of appointment: The maximum for the appointment of a managing director 1. “Years at a time and can be reappointed within the last 2 years of the present term. A person can an as a managing director for the maximum 2 companies of which one must be a public company

(5) Qualification: A person appointed as Managing Director must be a director of the company and he should not be less than 21 years of age and more than 70 years of age. He should not be adjudicated as insolvent by the court of law. He should not be convicted by the court of law for an offence with a sentence of more than 6 months period.

(6) Remuneration: The remuneration of the Managing Director should not exceed 5% of net profits without the sanction of the Central Government. The remuneration may be paid either by way of the monthly payment or as a specific percentage of the net profits of the company.

(7) Powers: Managing Director is given substantial powers. Substantial powers are powers of executive nature like deciding the purchase policy, sales policy, credit policy, investment policy, selection and recruitment procedure, etc.

(8) Nature of duty: He works under the super intendant, control, and direction of the Board of Directors. He is responsible for the Implementation of the policies framed by the Board. He acts as a link between the Board and the staff of the company. He is responsible for the day-to-day administration of the affairs of the company. He works in two capacities, viz. that Of a Director and that of a Manager of the company' A Managing Director is first a Director and then an employee.

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अध्याय 6: Directors and Key Managerial personnel of a company - EXERCISES [पृष्ठ १०१]

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बालभारती Secretarial Practice [English] 11 Standard Maharashtra State Board
अध्याय 6 Directors and Key Managerial personnel of a company
EXERCISES | Q 7. 3) | पृष्ठ १०१

संबंधित प्रश्न

Select the correct answer from the options given below and rewrite the statement.

________Comprises of a team of Director.


Select the correct answer from the options given below and rewrite the statement.

________ can be a director.


Select the correct answer from the options given below and rewrite the statement.

A maximum of __________ Directorships of a public company is allowed to a person.


Select the correct answer from the options given below and rewrite the statement.

_______ Is a unique identification number required to be a Director?


Select the correct answer from the options given below and rewrite the statement.

Director represents company in his role as ________


State whether the following statement is True or False.

A large number of shareholders necessitates the company to have a separate managerial body.


State whether the following statement is True or False.

The maximum number of Directors allowed to a company is 15 (fifteen).


State whether the following statement is True or False.

DIN is required for Secretaryship.


State whether the following statement is True or False.

A Director is an employee of the company.


State whether the following statement is True or False.

Indian companies prefer a Managing Director over a Manager.


Complete the sentence.

Separate ownership and management is a unique feature of_______


Complete the sentence.

Minimum number of Directors for a public company should be _______


Complete the sentence.

Minimum number of Directors for an OPC should be _______


Complete the sentence.

At least one Woman Director is required by ______ company.


Complete the sentence.

The audit which checks the compliance of Companies Act is called as _______.


Select the correct option from the bracket:

Group A Group B
____________ Alternate Director

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