Amit, who has vast experience in the area of managing a steel manufacturing company for more than 20 years and he has a qualification of MBA from the Indian Institute of Management, Ahmedabad. He is also a qualified Char

Section 196 of the Companies Act, 2013 provides that no company shall appoint or employ at the same time a Managing Director and a Manager. Further, a company shall not appoint or reappoint any person as its Managing Director, Whole Time Director or Manager for a term exceeding five years at a time and no reappointment shall be made earlier than one year before the expiry of his term. Section 196(2) relates to term of managing director not to exceed five years. Section 196(2) applicable to all companies whether public or private, but is not applicable to Government Company. With reference to above provisions, in the given case, if Amit is appointed as Managing Director for life time in PQR Private Limited then such appointment is in contravention of section 196(2). PQR Pvt. Ltd. cannot appoint Amit as Managing director for a period exceeding five years at a time. If the Company is a Government Company, then section 196(2) is not applicable vide Notification No. GSR 463(E) dated 05-06-2015. In such a case, his appointment can be made for a period till he retires from Government service. Section 6(2) of the Companies Act, 2013 states that any provision contained in the memorandum, articles, agreement or resolution shall, to the extent to which it is repugnant to the provisions of this Act, become or be void, as the case may be. Hence, even though articles provide the provision for appointment of Managing Director for longtime, it is contrary to the provisions of the Act and hence invalid. Therefore, in case of PQR Pvt. Ltd., MD can't be appointed for life time.