(1) After the 15th day August, 1960, no person shall, at the same time, hold office as managing agent in more than ten companies.
(2) Where a person holding office as managing agent in more than ten companies before that date fails to comply with sub-section (1), the Central Government may permit him to hold office as managing agent with effect from that date in respect of such of those companies, not exceeding ten in number, as it may determine.
(3) In calculating the number of companies of which a person may be a managing agent in pursuance of this section, the following companies shall be excluded, namely :-
(a) a private company which is neither a subsidiary nor a holding company of a public company;
(b) an unlimited company;
(c) an association which does not carry on business for profit, or which prohibits the payment of a dividend.
(4) For the purposes of this section, each of the following persons shall also be deemed to hold office as managing agent of the company :-
(a) where the managing agent of the company is a firm, every partner in the firm;
(b) where the managing agent of the company is itself a company, every person who is a director, the secretaries and treasurers or a manager of the latter company, and where the latter company is a public company, every member who is entitled to exercise not less than ten per cent of the total voting power therein and, where the latter is a private company, every member thereof who is entitled to exercise not less than five per cent of the total voting power therein.
(4A) A director or member referred to in clause (b) of sub-section (4) shall include any person in accordance with whose directions or instructions any director or, as the case may be, any member is in the opinion of the Central Government accustomed to act.
(5) Any person who acts as a managing agent of more than ten companies in contravention of this section shall be punishable with fine which may extend to one thousand rupees in respect of each of those companies in excess of ten, for each day on which he so acts.
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