atish singh (article assistant) 18 July 2008

managing director

can the board of directors of a public company authorise the managing director to accept the sale proceeds of the assets of the company on his own account

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(Guest)

Sale of asset by the Company will be credited to the Companies account for a valid discharge of contract. MD cannot take it for himself.

Santosh Kumar Dhondekar (LEGAL OFFICER ) 18 July 2008

No, Board of Directors cannot authorize the Managing Director to accept the sale proceeds of Company assets on his own account.

By passing the resolution the Board of Directors can authorize the Managing Director to accept the sale proceeds of the Company assets but the same shall be credited to Company Account.