What is the maximum term of one appointment as a managing director under Section 196(2) of the Companies Act, 2013?
Question and options
What is the maximum term of one appointment as a managing director under Section 196(2) of the Companies Act, 2013?
4 years at a time
2 years at a time
5 years at a time
3 years at a time
Answer and explanation
Correct answer: C - 5 years at a time
Section 196(2) of the Companies Act, 2013 provides that no company shall appoint or re-appoint any person as its managing director, whole-time director or manager for a term exceeding five years at a time. Re-appointment is possible, but no earlier than one year before the current term ends.
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