CA Intermediate · Corporate and Other Laws · Preliminary
Sunrise Agro Pvt Ltd has a paid-up share capital of Rs 3 crore and has no holding company. Its turnover is Rs 120 crore. Anil, who is not a director or shareholder, is employed as a chief manager and is in charge of the company's day-to-day operations, subject to the superintendence of the Board. Under the Companies Act, 2013, how is Anil classified in relation to the definition of 'manager'?
Anil is a manager under the Companies Act, 2013. A manager is an individual who, under the Board's superintendence, control and direction, manages the whole or substantially the whole of the company's affairs. Neither directorship nor shareholding is required, and private companies can have managers.
- AHe is a manager, because he manages the whole or substantially the whole of the affairs of the company subject to the Board's controlCorrect
- BHe is not a manager, because only a director can be a manager
- CHe is not a manager, because a manager must hold shares in the company
- DHe is not a manager, because a private company cannot have a manager
Explanation
The Act defines a manager as an individual who, subject to the superintendence, control and direction of the Board, has the management of the whole or substantially the whole of the affairs of the company. The definition covers a director or any other person occupying that position. Anil's role fits this, so he is a manager. A shareholding is not required and private companies may have managers.
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