Selfappointment as md

In case of company, powers/ Authority  are well defined and reduced in writing both in Memorandum and Articles of Association.  Study them properly and consult any local advocate cum Company secretary for further guidance.  Also purchase Companies Act and go through all relevant legal issues concerned with company.

As you written that existing director have appointed one director as working executive director so he can do the work in the ordinary course of business i.e day to day affairs of the compeny but their power can be confined through the Board Meeting and AGM where resolution can be passed according to the companies act 2013.

So, kindly read the provision of giving power to director on behalf of board.

It is presumed from what you have reported that the Working Executive Director is not a shareholder of the Company. He is calling himself  Managing Director. A person can be appointed as Managing Director of a Company, whether a shareholder or otherwise, and his remuneration fixed by the shareholders of the company by a majority vote. Such appointment can be approved post facto also.  As 2/3rds of the votes are within the family, approval of his appointment is a foregone conclusion. As regards authority to sign cheques, it also depends on the articles of association. In fact banks will not honor his cheques if he did not have the necessary authority. You should have thought twice before associating yourself with a family concern, which is not your family. As a 1/3 shareholder you are just an investor.