Section 196 - Appointment of managing director, whole-time director or manager

Appointment limits for managerial personnel restrict simultaneous roles and set term, age and approval requirements for directors.

Appointment rules prohibit simultaneous service as managing director and manager, cap tenure of managing directors, whole-time directors and managers at five years with restricted re-appointment timing, and set age and disqualification criteria including age bounds, insolvency, compositions with creditors and certain criminal convictions. Appointment and remuneration require Board approval, confirmation by resolution at the next general meeting, Central Government approval where they vary from Schedule conditions, disclosure of terms and director interests in meeting notices, and filing a prescribed return with the Registrar within sixty days.