{"id":1901,"date":"2018-07-23T06:47:26","date_gmt":"2018-07-23T06:47:26","guid":{"rendered":"https:\/\/companyregistrationonline.in\/?p=1901"},"modified":"2025-07-01T09:24:14","modified_gmt":"2025-07-01T09:24:14","slug":"appointing-managing-director","status":"publish","type":"post","link":"https:\/\/companyregistrationonline.in\/blog\/appointing-managing-director\/","title":{"rendered":"Appointing a Managing Director,Whole-time Director and Manager"},"content":{"rendered":"<p style=\"text-align: justify\">The Appointment of Managing director is directed by Section 203 of the Companies Act, 2013 (before Section 269 of the Companies Act, 1956). However, it is not mandatory to appoint a Managing Director in a <a href=\"https:\/\/companyregistrationonline.in\/private-limited-company-registration\/\"><strong>Private Limited Company<\/strong><\/a> under the Companies Act, 2013.<\/p>\n<p style=\"text-align: justify\">The Board of Di\u00adrectors appoints one of its members to manage the responsibility of the company as a whole-time officer and calls him the Managing Director.<\/p>\n<p style=\"text-align: justify\">He acts as the chief executive. He occupies a position of dual authority and responsibility. As a manager, he performs the managerial functions and as a director, he attends the <strong><a href=\"https:\/\/companyregistrationonline.in\/blog\/board-meeting-rules-suggestions\/\">Board meeting<\/a><\/strong>s.<\/p>\n<p style=\"text-align: justify\">Only that person can be appointed as a Managing Di\u00adrector or Whole-time Director who is already a director in the company. So one cannot Appoint a non-director is a Managing or Whole-time Director.<\/p>\n<h2 style=\"text-align: justify\"><strong>APPOINTMENT OF MANAGING DIRECTOR, WHOLE\u2013TIME DIRECTOR OR MANAGER:<\/strong><\/h2>\n<ul style=\"text-align: justify\">\n<li>A company cannot appoint both the managing director and manager at the same time.<\/li>\n<li>Managing Director, whole-time director, and manager can be appointed for a maximum of 5-year tenure, however,\u00a0the company\u00a0may re-appoint them before the expiry of their present term\u00a0but not before one year before the expiry of the term. This means a company may re-appoint them for next term in the last year of the current term.\u00a0 [Sub \u2013 section (2)]<\/li>\n<li>At the time of appointment for these positions, the minimum age is Twenty-one years and retirement are is seventy years. so person below age\u00a0twenty-one can be appointed as\u00a0Managerial Personnel.<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong>Procedure for appointment of a person who has attained an age of 70 years:<\/strong><\/p>\n<ul style=\"text-align: justify\">\n<li>Call a <strong><a href=\"https:\/\/companyregistrationonline.in\/blog\/board-meeting-rules-suggestions\/\">Board Meeting<\/a><\/strong><\/li>\n<li>Issue notice of <strong><a href=\"https:\/\/companyregistrationonline.in\/blog\/notice-of-general-meetings-by-electronic-mode\/\">General Meeting<\/a><\/strong><\/li>\n<li>Pass Special Resolution In General Meeting.<\/li>\n<li>File MGT-14 with ROC within 30 days of the passing of the Resolution.<\/li>\n<li>File form DIR-12 and MR-1 with ROC within 30 days of the passing of the resolution of appointment.<\/li>\n<\/ul>\n<blockquote>\n<p style=\"text-align: justify\"><span data-sheets-userformat=\"{&quot;2&quot;:4194817,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0,&quot;25&quot;:{&quot;1&quot;:0,&quot;2&quot;:0}}\" data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;If you want to apply for Comapny Registration, you can go with Company Registration Online&quot;}\">If you want to apply for <a href=\"https:\/\/www.legalraasta.com\/private-limited-company-registration\/\"><strong>Private Limited<\/strong>\u00a0<strong>Company Registration<\/strong><\/a>, you can go with <strong>Company Registration Online<\/strong><\/span><\/p>\n<\/blockquote>\n<h3 style=\"text-align: justify\"><strong>The Managing Director must fulfill the following criteria:<\/strong><\/h3>\n<ul style=\"text-align: justify\">\n<li>He must be a member\u00a0of the Board of directors.<\/li>\n<li>He must be authorized with significant powers of management, which would not otherwise be exercisable by him.<\/li>\n<li>The general powers to do administrative acts of a routine nature are not to be deemed to be the substantial powers of management.<\/li>\n<li>The powers of management given to a managing director must be exercised by him subject to the control, superintendence, and directions of the Board of Directors.<\/li>\n<li>\u00a0who takes up the position of the managing director even without being designated as such would also be deemed to be a managing director.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify\"><strong>Persons not to be appointed Managing Directors:<\/strong><\/h3>\n<p style=\"text-align: justify\">No company should appoint or employ, or continue the appointment, any person as to its managing or whole-time director who-<\/p>\n<ul style=\"text-align: justify\">\n<li>is an undischarged bankrupt, or has at any time been adjudged a bankrupt,<\/li>\n<li>suspends or has at any time sus\u00adpended, payment to his creditors, or has at any time made a composition with them<\/li>\n<li>is, or has at any time, convicted by a Court of an offense involving moral tur\u00adpitude.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify\"><b>Powers, duties, and responsibilities of the man\u00adaging director<\/b><\/h3>\n<ul style=\"text-align: justify\">\n<li>Being a member of the board of directors participates in policy-making functions and\u00a0formulating the objectives of the Board.<\/li>\n<li>Execute policies laid down by the Board of Directors.<\/li>\n<li>Act as the intermediary officer between the organization and the Board of Directors.<\/li>\n<li>Communicate and\u00a0Interpret the policies of the company to sub employees.<\/li>\n<li>To review and present the operations of the company to the Board periodically accounts and statistics showing the progress and the present po\u00adsition of the company.<\/li>\n<li>Appoint high officials of the company.<\/li>\n<li>Formulate the\u00a0compen\u00adsation and employment plan by the accepted poli\u00adcies of the company.<\/li>\n<li>Plan the expansion\u00a0and development of the business.<\/li>\n<li>Organize meetings with department heads.<\/li>\n<li>\u00a0Promote high morale among the em\u00adployees of the company by creating a sense of belong\u00ading.<\/li>\n<li>Maintain contact with the govt., trade unions, and community chamber of commerce, at large.<\/li>\n<li>\u00a0Maintain a balanced relationship be\u00adtween line and staff managers.<\/li>\n<li>Approve or disapprove development plans submitted by the senior executives and place before the Board for final approval.<\/li>\n<li>Build a system of budgetary control by which the actual performance of the company may be evaluated against the planned course of action.<\/li>\n<li>Supervise production and sales activi\u00adties of the company.<\/li>\n<li>\u00a0Give due attention to consumer satis\u00adfaction which is ensured by the continued supply of goods and services to the market.<\/li>\n<\/ul>\n<blockquote>\n<p style=\"text-align: justify\">Related Post-<\/p>\n<ul>\n<li style=\"text-align: justify\">\n<p class=\"entry-title fusion-post-title\" data-lineheight=\"27\" data-fontsize=\"30\"><a href=\"https:\/\/companyregistrationonline.in\/blog\/tds-guide\/\">A Detailed Guide to TDS<\/a><\/p>\n<\/li>\n<li>\n<p class=\"entry-title fusion-post-title\" style=\"text-align: justify\" data-lineheight=\"27\" data-fontsize=\"30\"><a href=\"https:\/\/companyregistrationonline.in\/blog\/corporate-insolvency-resolution-process\/\">Corporate Insolvency Resolution Process<\/a><\/p>\n<\/li>\n<li>\n<p class=\"entry-title fusion-post-title\" data-lineheight=\"37\" data-fontsize=\"30\"><a href=\"https:\/\/www.legalraasta.com\/blog\/private-limited-company-registration-kolkatta\/\">Private Limited Company Registration in Kolkata<\/a><\/p>\n<\/li>\n<\/ul>\n<\/blockquote>\n<p>Visit <strong>Company Registration Online <\/strong>for more details.<\/p>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Appointment of Managing director is directed by Section 203 of the Companies Act, 2013 (before Section 269 of the Companies Act, 1956). However, it  [&#8230;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[557],"tags":[],"class_list":["post-1901","post","type-post","status-publish","format-standard","hentry","category-company-articles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Appointing a Managing Director, Whole-time Director and manager<\/title>\n<meta name=\"description\" content=\"Appointment of managing director is directed by the\u00a0Section 203 of the Companies Act, 2013 (prior Section 269 of the Companies Act, 1956).\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/companyregistrationonline.in\/blog\/appointing-managing-director\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Appointing a Managing Director, Whole-time Director and manager\" \/>\n<meta property=\"og:description\" content=\"Appointment of managing director is directed by the\u00a0Section 203 of the Companies Act, 2013 (prior Section 269 of the Companies Act, 1956).\" \/>\n<meta property=\"og:url\" content=\"https:\/\/companyregistrationonline.in\/blog\/appointing-managing-director\/\" \/>\n<meta property=\"og:site_name\" content=\"Company Registration Online\" \/>\n<meta property=\"article:published_time\" content=\"2018-07-23T06:47:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-01T09:24:14+00:00\" \/>\n<meta name=\"author\" content=\"Adarsh Kapoor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Adarsh Kapoor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/companyregistrationonline.in\/blog\/appointing-managing-director\/\",\"url\":\"https:\/\/companyregistrationonline.in\/blog\/appointing-managing-director\/\",\"name\":\"Appointing a Managing Director, Whole-time Director and manager\",\"isPartOf\":{\"@id\":\"https:\/\/companyregistrationonline.in\/blog\/#website\"},\"datePublished\":\"2018-07-23T06:47:26+00:00\",\"dateModified\":\"2025-07-01T09:24:14+00:00\",\"author\":{\"@id\":\"https:\/\/companyregistrationonline.in\/blog\/#\/schema\/person\/391d9876bf316fe4b0d846122ace539b\"},\"description\":\"Appointment of managing director is directed by the\u00a0Section 203 of the Companies Act, 2013 (prior Section 269 of the Companies Act, 1956).\",\"breadcrumb\":{\"@id\":\"https:\/\/companyregistrationonline.in\/blog\/appointing-managing-director\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/companyregistrationonline.in\/blog\/appointing-managing-director\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/companyregistrationonline.in\/blog\/appointing-managing-director\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/companyregistrationonline.in\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Appointing a Managing Director,Whole-time Director and Manager\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/companyregistrationonline.in\/blog\/#website\",\"url\":\"https:\/\/companyregistrationonline.in\/blog\/\",\"name\":\"Company Registration Online\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/companyregistrationonline.in\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/companyregistrationonline.in\/blog\/#\/schema\/person\/391d9876bf316fe4b0d846122ace539b\",\"name\":\"Adarsh Kapoor\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/companyregistrationonline.in\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/companyregistrationonline.in\/blog\/wp-content\/uploads\/2025\/07\/WhatsApp-Image-2025-07-16-at-3.48.49-PM-150x150.jpg\",\"contentUrl\":\"https:\/\/companyregistrationonline.in\/blog\/wp-content\/uploads\/2025\/07\/WhatsApp-Image-2025-07-16-at-3.48.49-PM-150x150.jpg\",\"caption\":\"Adarsh Kapoor\"},\"description\":\"I'm Adarsh Kapoor, a content writer with 2.5+ years of experience in creating engaging and SEO-friendly content. 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