A: How are the first directors of the company appointed?
The shareholders appoint the Board of Directors, which can, and often will, include some of theshareholders. In small businesses the owner may be the sole director. Sometimes, however, as acorporation grows, it becomes advantageous to bring in an additional director, or directors, to presentother opinions and expertise on business matters. Q1
B: What is the notice period required for a board meeting?
nswer: Immediate, the board meeting should be held minimum four times in a financial year and oneshould be in each quarter. Q
2 A:Can a Company appoint a Managing Director and a Manager at the same time? A
nswer: No company can appoint or employ, at the same time, or, continue the appointment or,employment at the same time, of a Managing Director, as well as a Manager.But, there is no legal prohibition against having a Whole Time Director and Manager, simultaneously, or,Managing Director and whole-time Director, simultaneously. A
gain, there is no prohibition on acompany having more than one Managing Director.This section applies to all companies, public and private. A
s per provisions of this section a companycannot apply both managing director and manager at the same time. The term managing director" and"manager" has been defined in section 2(26) and 2(24) respectively. "Managing director is a directorwho is entrusted with "substantial" powers of management which would not otherwise be exercisableby him. From the definition of managing director it appears that the company may entrust "substantial"power of management to one or more directors and therefore a company may have more than onemanaging director. Further the expression M A
DIRECTOR shall also include a director occupyingthe position of managing director, by whatever name called. For instance, President, CEO, chief operating officer, etc. in the case of MNCs shall be considered as the M A
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