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CMA Intermediate · Business Laws and Ethics · Directors - Role, Responsibilities, Qualification, Appointment, Removal, Remuneration and Powers

Under the Companies Act, 2013, a company may NOT appoint or employ at the same time which of the following pairs?

A company cannot have a managing director and a manager at the same time. Section 196(1) prohibits appointing or employing both together. The other pairs, such as an MD with a whole-time director, are not barred by this provision.

  1. AA managing director and a managerCorrect
  2. BA managing director and a whole-time director
  3. CA whole-time director and a company secretary
  4. DA managing director and a chief financial officer

Explanation

Section 196(1) says no company shall appoint or employ at the same time a managing director and a manager. The text places no such bar on an MD together with a whole-time director, so the second option is wrong. A company secretary or CFO is a separate office and is not covered by this bar.

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