Draft Agreement For The Appointment of Managing Director

draft-agreement-for-appointment-of-managing-director-under-companies-act-2013

Draft Agreement For The Appointment of Managing Director


This agreement is made on this …… day of ………… 2016, between ………………………., a company incorporated under the Companies Act, 1956 and having its Registered office at ………………………………, (Hereinafter called “the Company”) of the one part and Mr. …………… (DIN: ------------) (Hereinafter called “the Managing Director”) of the other part, whereby it is agreed as follows:

1. The Company hereby appoints Mr. ---------------------------- (DIN: -------------) as Managing Director of the Company and the Managing Director hereby agrees to serve the Company in such a capacity for a period of ………..  years with effect from ------------------.

Now this present witness and it is hereby agreed by and between the parties thereto as follows:

2. The Managing Director shall exercise and perform such powers and duties as the Board of Directors of the Company (hereinafter called “the Board”) shall from time to time determine, and subject to any directions, and restrictions, time to time given and imposed by the Board, he shall have the general control, management and superintendence of the business of the Company and to enter into contracts on behalf of the Company in the ordinary course of business and to do and perform all other acts and things, which in the ordinary course of business he may consider necessary or proper or in the interest of the Company.

3. The Managing Director shall throughout the said term devote the whole of his time, attention and abilities to the business of the Company, and shall obey the orders from time to time, of the Board and in all respects, confirm to and comply with the directions and regulations made by the Board, and shall well and faithfully serve the company and use his utmost endeavors to promote the interest thereof.

4. The Company shall pay to the Managing Director during the continuance of this Agreement in consideration of the performance of his duties.

i.       A salary at the rate of Rs. --------------  (Rupees -------------  only) per month w.e.f-------------------, which may be reviewed by the Board.

ii.   The company shall provide the Managing Director with rent free furnished accommodation and will pay electricity and water charges;

iii.  The Managing Director shall be entitled to use the company's car, all the expenses for maintenance and running of the same including salary of the driver to be borne by the company; 

iv.  The Managing Director shall be entitled to participate in provident fund, gratuity fund or such other schemes for the employees, which the company may establish from time to time.

v.    Reimbursement of medical and hospitalization expenses of the Managing Director and his family in accordance with the Company policy.

vi.      LeaveTravel Allowance for the Managing Director and his family once in a year in accordance with the Company policy.

Vii.   Bonus for the financial year, at the discretion of the board.

Viii  Reimbursement of expenses incurred by him on account of business of the    Company in accordance with the Company policy.

ix.      Reimbursement of any other expenses properly incurred by him in accordance with the rules and policies of the Company.

x.        The Managing Director shall be entitled to such increment from time to time as the Board may by its discretion determine.

5.  This agreement may be terminated by either the Company or the Managing Director at any time within the five year period, by the giving of 3 months notice in writing.

In witness whereof the parties hereto have set their hands the day, month and year first above written.


For …………………………………

(Name of Director)                                                                      (Name of MD)
DIRECTOR                                                                                             Managing Director
DIN: ---------                                                                                 DIN: --------------
Add: --------------------                                                                Add:---------------


Witness
........................................                                                                             .....................................
…………………………..                                                                             …………………………

Note : This Draft Agreement For The Appointment of Managing Director is only for the reference, kindly make necessary changes as applicable in the given case.
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