X is a 20 year old B. Com. graduate who is the son of Y aged 70, a top businessman in India. Y intends to appoint his son X as the Managing Director (MD) of one of his group companies and continues to be the Managing Dir

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 re-appoint any person as its Managing Director, Whole Time Director or manager for a term exceeding five years at a time and no re-appointment shall be made earlier than one year before the expiry of his term. No company shall appoint or continue the employment of any person as managing director, whole-time director or manager who is below the age of twenty-one years or has attained the age of seventy years: is an undischarged insolvent or has at any time been adjudged as an insolvent: has at any time suspended payment to his creditors or makes, or has at any time made, a composition with them; or has at any time been convicted by a court of an offence and sentenced for a period of more than six months. Appointment of a person who has attained the age of seventy years may be made by passing a special resolution in which case the explanatory statement annexed to the notice for such motion shall indicate the justification for appointing such person; Where no such special resolution is passed but votes cast in favour of the motion exceed the votes, if any, cast against the motion and the Central Government is satisfied, on an application made by the Board, that such appointment is most beneficial to the company, the appointment of the person who has attained the age of seventy years may be made. Hence, Mr.X cannot be appointed as MD, without approval of Central Government, since he is less than 21 years and Mr. Y can be appointed by passing a special resolution.