317. Managing Director not to be appointed for more than five years at a time .-
(1)No company shall, after the commencement of this Act, appoint or employ any individual as its Managing Director for a term exceeding five years at a time.(2)Any individual holding at the commencement of this Act the office of Managing Director in a company shall unless his term expires earlier, be deemed to have vacated his office immediately on the expiry of five years from the commencement of this Act.(3)Nothing contained in sub-section (1) shall be deemed to prohibit the re-appointment, re-employment, or the extension of the term of office, of any person by further periods not exceeding five years on each occasion:Provided that any such re-appointment, re-employment or extension shall not be sanctioned earlier than two years from the date on which it is to come into force.(4)[This section shall not apply to a private company unless it is a sub-sidiary of a public company.]Compensation for loss of office
