Document background
The Agreement for Appointment of Managing Director is a mandatory legal document required under Indian corporate law when appointing a Managing Director to a company. This agreement becomes necessary upon either the initial appointment of a Managing Director or the renewal of their term. It must comply with the Companies Act, 2013, particularly Sections 196-203, and Schedule V, which govern managerial appointments and remuneration. For listed companies, additional compliance with SEBI regulations is required. The agreement typically follows board and/or shareholder approval, depending on the company's articles of association and statutory requirements. It serves as a comprehensive document detailing the rights, responsibilities, remuneration, and terms of service of the Managing Director while ensuring regulatory compliance and corporate governance standards.
