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.
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