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Wednesday, February 22, 2012

MANAGING DIRECTOR FOR LIFE TIME

For Private Limited company a managing director can be appointed for life time as the provisions of the companies act,1956 are not applicable to private limited companies. However for public limited companies a managing director can be appointed for maximum period of five years or in some cases three years when Schedule XIII of the Companies Act is applicable. The Articles of Association of Private Companies normally contains a clause on Life Time managing director or may be stated that the directors are not liable to retire by rotation.