Conditions for appointment of managing directors determine when government approval is required based on profit adequacy. Conditions for appointment of managing or whole-time directors are required to be satisfied only at the time of appointment; subsequent non compliance during tenure does not necessitate Central Government approval. Profit-related eligibility under clause (f) requires adequate net profits computed under sections 349-351 in the immediately preceding year or in any three of the four years prior; if profits are inadequate or cannot be computed, Central Government approval is required. Depreciation for profit computation is determined by the written down value method at Schedule XIV rates, applied to assets as shown in the books at year end.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Conditions for appointment of managing directors determine when government approval is required based on profit adequacy.
Conditions for appointment of managing or whole-time directors are required to be satisfied only at the time of appointment; subsequent non compliance during tenure does not necessitate Central Government approval. Profit-related eligibility under clause (f) requires adequate net profits computed under sections 349-351 in the immediately preceding year or in any three of the four years prior; if profits are inadequate or cannot be computed, Central Government approval is required. Depreciation for profit computation is determined by the written down value method at Schedule XIV rates, applied to assets as shown in the books at year end.
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