Managing director not barred by age

After the 2013 amendment to the Companies Act, a person who has attained 70 years may be appointed managing director by passing a special resolution. It shall be accompanied by an explanatory statement annexed to the notice for such motion justifying the position while deciding the case, Sridhar vs Ultramarine & Pigments Ltd. The joint director sought an injunction against the chairman & managing director continuing, since he was over 70 years. He was appointed before the amendment. The incumbent stated that the amendment could not be enforced retrospectively. The high court therefore explained that if he was already appointed prior to the amendment when he was below 70, “ the disqualification would operate automatically, subject to the provison i. e. special resolution being passed by the company.”

Business Standard, New Delhi, 15th Feb. 2016

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