Approval of appointment/re‑appointment and remuneration payable to managing/whole-time directors or managers ‑ Re of application forms to provide additional information - Companies Law - Circular : No. 2(33)-CL‑VII/75,

Circular : No. 2(33)-CL ‑ VII/75, dated 28 ‑ 5 ‑ 1976. Subject:- Approval of appointment/re ‑ appointment and remuneration payable to managing/whole-time directors or managers ‑ Revision of application forms to provide additional information Notification No. GSR 248(E), dated 24‑3‑1976, has since revised9 the application Form Nos. 25A and 25C to be submitted to the Central Government for approval of the appointment/re‑appointment and remuneration payable to managing directors/whole‑time directors or managers under section 269, 311 or 388, read with section 198(4)/309(3)/387, as the case may be. These amendments became necessary because the amendments made to section 269 by the Companies (Amendment) Act, 1974, cast a responsibility on the Central Government to ensure that a proposed managing or whole‑time director of a company is, in its opinion, a fit and proper person to be appointed as such and that the appointment of such a person as a managing or a whole‑time director is not against the public interest. Some of the more important additional information now required to be furnished by public limited companies and/or their subsidiaries may briefly be stated as follows : 1. In column 15 information as to whether the proposed managing/ whole‑time director/manager is working in any other company as managing or a whole‑time director/employee is to be given with details indicating the remuneration drawn by him during the last three years. 2. In column 16, they are required to indicate whether the proposed managing/whole‑time director/manager was involved at any time in proceedings under : i. The Indian Stamps Act, 1899 (2 of 1899) ii. The Central Excises and Salt Act, 1944 (1 of 1944) iii. The Imports Exports (Control) Act, 1947 (18 of 1947) iv. The Prevention of Food Adulteration Act, 1954 (37 of 1954) v. The Essential Commodities Act, 1955 (10 of 1955) vi. The Companies Act, 1956 (1 of 1956) vii. The Wealth‑tax Act, 1957 (27 of 1957) viii. The Income‑tax Act, 1961 (43 of 1961) ix. The Customs Act, 1962 (52 of 1962) x. The Gold Control Act, 1968 (45 of 1968) xi. The Foreign Exchange Regulation Act, 1973 (46 of 1973), and whether any such proceedings are pending before the appropriate authorities on the date of submission of the applications to the Central Government for approval of the appointment/re‑appointment of such a person as managing director/whole‑time director/manager. Unless the additional information, which is now required to be furnished to the Central Government, is forwarded to the Department of Company Affairs in respect of applications already submitted, the applications are likely to get delayed as such additional information will have to be called for before applications are disposed of.