Term limits for managing directors restrict appointments to fixed multi year terms and regulate permissible reappointments. The Companies Act limits appointment of a managing director to terms not exceeding five years; incumbents at commencement vacate office at five years from commencement unless their term ended earlier. Re-appointment or extension is permitted in successive periods not exceeding five years, subject to a prohibition on sanctioning renewals earlier than two years before they commence. The term limit does not apply to private companies except where the private company is a subsidiary of a public company.