Appointment of an individual as a Managing Director who is already Managing Director or Manager of another company
A public company or a private company which is a subsidiary of a public company may appoint or employ a person as its managing director, if he is already the managing director or manager of one, and of not more than one, other company (including a private company which is not a subsidiary of a public company). The condition for appointment is that the appointment or employment is made or approved by a resolution passed at a meeting of the Board with the unanimous consent of all the directors present at the meeting and of which meeting the resolution to be moved thereat, specific notice has been given to all the directors then in
In such case the provisions of section 190 shall apply as regards to the giving of special notice of the meeting and of resolution to be moved thereat in case. The notice must specifically mention the business to be transacted at the meeting and contain proposed resolution to be passed at the meeting.
The Central Government may, by order, permit any person to be appointed as a managing director of more than two companies, if the Central Government is satisfied that it is necessary that the companies should, for their proper working, function as a single unit and have a common managing director.
