Plastocare Limited, a Public Limited Company wanted to appoint Ashish Kothari as its Managing Director, for which a notice of EGM has been sent to all the members. However, the notice did not contain any information abou

As per provisions of first proviso to Section 196(4) of the Companies Act 2013, a notice convening the Board or General Meeting for considering appointment of Managing Director shall include the terms and conditions of such appointment, remuneration payable and such other matters including, interest, of a Director or Directors, in such appointment, if any. Hence, the notice not containing the information about the interest of other directors in the appointment of Mr. Ashish Kothari as Managing Director by Plastocare Limited is invalid. However, government companies are exempt from the provisions of Section 196(4) of the Companies Act, 2013. Therefore, if Plastocare Limited would have been a Government Company the notice would not be rendered invalid due to the missing information about the interest of other directors in the appointment of Mr. Ashish Kothari as Managing Director of the Company.