Section 187 — Appointment of subsequent chief executive

(1) Within fourteen
days from the date of election of directors under section 159 or the office of the
chief executive falling vacant, as the case may be, the board shall appoint any
person, including an elected director, to be the chief executive, but such
appointment shall not be for a period exceeding three years from the date of
appointment:

Provided that the chief executive appointed against a casual vacancy shall
hold office till the directors elected in the next election appoint a chief executive.

(2) On the expiry of his term of office under section 186 or sub-section
(1) of this section, a chief executive shall be eligible for reappointment.

(3) The chief executive retiring under section 186 or this section shall
continue to perform his functions until his successor is appointed, unless non -
appointment of his successor is due to any fault on his part or his office is expressly
terminated.

(4) Notwithstanding anything contained in this section, the Government
shall have the power to nominate chief executive of a company where majority of
directors is nominated by the Government, in such manner as may be specified.