Deemed Public Company ‑ Effect of deemed conversion on managing director’s appointment, remuneration, etc. - Companies Law - Letter : No. F. 8/16(1)/61‑PR,

Letter : No. F. 8/16(1)/61 ‑ PR, dated 23 ‑ 1 ‑ 1961. Subject:- Deemed Public Company ‑ Effect of deemed conversion on managing director s appointment, remuneration, etc. Where private companies convert into public companies or become deemed public companies and have pre‑existing managing directors whose remuneration is in accord with sections 309 and 198, as amended, no permission of the Central Government would be necessary for the continuance of the existing appointment. But sections 268 and 317 will become applicable as from the date of conversion or change of character and the Central Government s approval will be necessary for any amendment in the terms of appointment or at the time of re‑appointment under section 269(2), as it will also be necessary for purposes of payment of minimum remuneration under section 198(4).