[Note : Write only the content which is asked in your question] 1. Qualifications of Managing Director:
There is no specific provisions in companies act for the qualifications of Managing Director.
A person appointed as Managing Director should be experienced, creative and technocrat.
He should be subject expert and capable of taking proper decision in critical times.
2. Disqualification of Managing Director: Following disqualifications of Managing Director are mentioned in Companies Act.
(1) Age of the appointee Managing Director should not be less than 21 years and more than 70 years.
(2) He should not have been declared to be insolvent at any time.
(3) He should not have been suspended payment to his creditors.
(4) He is not qualified for an appointment, if he has been convicted by a court of an offence for more than six months for breach of any prevailing laws in India.
3. Remuneration of Managing Directors:
(1) Th remuneration payable to a full time Managing Director is up to 5% of the net profit without taking consent of general meeting.
(2) The remuneration payable to part time Managing Director should not be more than 1% of the net profit of the company.
(3) The remuneration payable to Managing Director shall be determined in accordance with the provisions of Companies Act or Articles of Association or the resolution passed in the meeting.
4. The remuneration recovered : When company is required to restate its financial staterient due to non-compliance with any recruitment as per Act, the company shall recover from Managing Director, remuneration received in excess during that period.
5. When Managing Director is not compensated ? Managing Director may be paid compensation for the termination of his office. (This type of remuneration can not be paid to other directors) Managing Director is not entitled to any compensation in case of his resignation, or being found guilty in some legal proceeding, breach of trust, fraud, mismanagement of company or if he provokes others to initiate and expediate the termination of his own office.