Disqualifications of a Manager

Section 385 provides that no company shall appoint or continue the appointment or employment of any person as its manager, who

(a) is an undercharged insolvent; or

(b) has at any time within the preceding five years been adjudged an insolvent; or (c) suspends, or has suspended within the previous five years payment

to his

creditors; or

(d) makes, or has at any time, within the preceding five years made a composition with his creditors; or

(e) is, or has at any time within the preceding five years been convicted of an

offence involving moral turpitude.

Besides the aforesaid disqualifications, a person who doesn’t satisfy the conditions of Schedule XIII cannot be appointed as a manager unless approval of

the Central Government is obtained.

Thus, we may notice that the disqualifications of a manager are the same as that of a managing director except that in the case of a manager any of these

disqualifications should be there during the preceding 5 years when the appointment is considered while in the case of managing director it is a life time

stigma.