India, Nov. 13 -- While a managing director"s invalidly constituted employment contract may be treated as if it were valid, it can be rescinded at any time without good cause.

Companies and managing directors should, of course, always make sure that the employment contract is validly constituted and that all contractual arrangements are valid. However, it is possible for mistakes to be made when concluding an employment contract that renders it invalidly constituted. This is not necessarily a problem as long as there is no dispute between the parties, and the shareholders or, more specifically, the supervisory board are aware of the managing director"s service. We at the commercial law firm MTR Rechtsanwalte