19. M.D.H. Masala Enterprises Limited, a public company incorporated under the Companies Act, 2013 is into the business of trading of various chat masalas used in daily food items. Mr. Vinayak, was appointed as the Chief Financial Officer of the company on 2nd July, 2017 by the
board of Directors. In the upcoming Board Meeting scheduled on 30th April 2020, Mr. Rinkesh aged 55 years was appointed as Managing Director of the company. The Board of Directors also made a re- appointment for another term of 3 years in the said meeting. Further in the Annual General Meeting of the company held on 30th June 2020, the appointment of Mr. Rinkesh was approved by the company and the members also noted the reappointment of Mr. Vinayak as Chief Financial Officer for another term of 3 years. You are required to state whether the reappointment of Mr. Vinayak is valid in law?

(a) Yes, the reappointment of Mr. Vinayak is valid in law as the Board of Director may appoint him for such term as it thinks fit.

(b) No, the reappointment of Mr. Vinayak is not valid in law as no Key Managerial Person shall be reappointed earlier than one year before the expiry of his term.

(c) No, the reappointment of Mr. Vinayak is not valid in law as the reappointment has not been subsequently approved by the company in the General Meeting.

(d) Both (b) and (c)




















Ans: (a) Yes, the reappointment of Mr. Vinayak is valid in law as the Board of Director may appoint him for such term as it thinks fit.




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