The Companies Act, 1956
326. CENTRAL GOVERNMENT TO APPROVE OF APPOINTMENT, ETC., OF MANAGING AGENT; AND CIRCUMSTANCES IN WHICH APPROVAL MAY BE ACCORDED.
(1) In respect of any company to which neither the prohibition specified in section 324 nor that specified in section 325 applies, a managing agent shall not be appointed or re-appointed, -(a) except by the company in general meeting; and(b) unless the approval of the Central Government has been obtained for such appointment or re-appointment.(2) The Central Government shall not accord its approval under sub-section (1) in any case, unless it is satisfied -(a) that it is not against the public interest to allow the company to have managing agent;(b) that the managing agent proposed is, in its opinion, a fit and proper person to be appointed or re-appointed as such, and that the conditions of the managing agency agreement proposed are fair and reasonable; and
(c) that the managing agent proposed has fulfilled any conditions which the Central Government requires him to fulfill.