Advise the Board of directors of Clean Ltd. regarding appointment in the following scenarios: Is it possible to appoint Ram as Managing director of Clean Ltd. when Shyam is already a Manager of the same company ?

CS Executive · Company Law · PYQS · June 2022
Advise the Board of directors of Clean Ltd. regarding appointment in the following scenarios: Is it possible to appoint Ram as Managing director of Clean Ltd. when Shyam is already a Manager of the same company ?

Answer & Explanation:

As per section 196(1) of the Companies Act, 2013 a company can appoint either Managing Director or Manager, but not both at the same time. Accordingly, Ram cannot be appointed as Managing Director of Clean Ltd. in case where Shyam is already appointed as a Manager of Clean Ltd. in view of section 196(1) of the Companies Act, 2013.

Topics: Appointment and Qualification of Directors

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