Section 328 – The Companies Act,1956

The Companies Act, 1956

328. TERM OF OFFICE OF MANAGING AGENT.

(1) After the commencement of this Act, no company shall -(a) in case it appoints a managing agent for the first time (that is to say, in case the company has had no managing agent at any time since its formation), make the appointment for a term exceeding fifteen years;(b) in any other case, re-appoint or appoint a managing agent for a term exceeding ten years at a time;(c) re-appoint a managing agent for a fresh term, when the existing term of the managing agent has two years or more to run :Provided that the Central Government may, if satisfied that it is in the interest of the company so to do, permit the re-appointment of a managing agent at an earlier time than that specified in clause (c).(2) For the purpose of sub-section (1), re-appointment does not include the re-appointment of any person on fresh, additional or changed conditions for any period not extending beyond his existing term, but otherwise includes -(a) the renewal, or the extension of the term, of a previous appointment; and(b) the appointment of any person or persons having an interest in the previous managing agency.

(3) Any appointment or re-appointment of a managing agent, made in contravention of the provisions of sub-section (1) and (2) shall be void in respect of the entire term for which the appointment or re-appointment is made.

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