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hi everyone, i would like to know about MD .i have recently open a call center which registered as pvt.ltd. would i be able to act as a MD.what is the qualification required to become a MD? and what is the procedure whether i need to fill up any form?

 
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Chartered Accountant

MD Means Managing Director,

MD first elected as a director by the board of directors/sharholders of the company. director of the company only can act as managing director.  

Under Section 2(26) and S. 2(13) of companies act 1956, a managing director is considered different from an ordinary director.  Whether a director would be considered as a whole-time director or managing director depends on the types of duties assigned to him. There may be more than one managing director in a company.

A managing director, as defined in Section 2(26), means a director who is encrusted with substantial powers of management which would not otherwise be exercisable by him. The "substantial powers" of management may be conferred upon him by virtue of an agreement with the company, or by a resolution of the company or the Board or by virtue of its memorandum and articles. The powers so conferred are alterable by the company. He is also removable the same way as he was appointed 
irrespective of the fact that his appointment has been approved by the Central Government. But if he is prematurely removed from office he is entitled to compensation. A managing director is an employee of the company, but not to the extent so as to be entitled to preferential payments

relevent sections are Sec252, 253, 254, 267 of Companies ACt 1956.

 
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HELLO RAMESH,THANK YOU VERY MUCH.ONE MORE QUESTION PLZ HELP ME OUT.I AM THE OWNER OF WE LINK CALL CENTER(BPO),SO WOULD I BE ABLE TO ACT AS MD OR DIRECTOR,WITHOUT ANY CENTRAL GOVERNMENT REGISTRATION?

 
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Consultant & Legal Analyst

First of all you need to tell, what is the constitution of your firm, a proprietory firm or a partnership firm, a private limited company or a public limited company?

 
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