Question: Who Is KMP As Per Companies Act?

Who are KMP as per Companies Act 2013?

Under Section 2 of the Companies Act 2013, Key Managerial Personnel in reference to a company are as follows: Chief Executive Officer/Managing Director.

Company Secretary.

Whole Time Director..

Who is not a KMP?

As per section 203, a whole time MD of a company which is mandatorily required to have a whole time KMP shall hold office in its subsidiary only but as an exception to this , a company may appoint a person as its managing director, if he is the managing director of one, and of not more than one, other company provided …

Is section 203 applicable to private companies?

Every listed company and every other public company having a paid-up share capital of ten crore rupees or more shall have whole-time key managerial personnel. Every private company which has a paid up share capital of ten crore rupees or more shall have a whole -time company secretary.

Can Company Secretary and CFO be the same person?

Currently, CFOs who double up as CS for their organisations have their hands full. “A CFO who is also the Company Secretary is the Chief Compliance Officer, Chief Risk Officer and Chief Strategist of the Company all rolled into one,” says Pawan Agrawal, CFO and CS for Power Exchange Ltd.

Is KMP applicable to private companies?

Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (KMP Rules) requires every listed company and every other public company having a paid-up share capital of ten crore rupees or more to appoint KMP.

Can CEO and CFO be the same person?

Can a CEO be a CFO? If the organization is a private company, then the CEO may also be the CFO unless otherwise required for compliance issues. However, publically traded companies must have two separate CEO and CFO roles for compliance, separation of duties, and attestation.

What is Section 184 of Companies Act 2013?

(1) Every director shall at the first meeting of the Board in which he participates as a director and thereafter at the first meeting of the Board in every financial year or whenever there is any change in the disclosures already made, then at the first Board meeting held after such change, disclose his concern or …

What is Section 185 of Companies Act?

Section 185 (as amended by the Companies (Amendment) Act, 2017): Limits the prohibition on loans, advances, etc. to Directors of the company or its holding company or any partner of such Director or any partner of such Director or any firm in which such Director or relative is a partner.

Is coo a KMP?

COO is not considered as a KMP but in future, COO can be considered as a KMP if it prescribes. As the fifth point give the competent authority or government official to consider any officer as a part of KMP as may be considered appropriate at the time of assessment.

Can CFO report to coo?

The COO is often referred to as a senior vice president. Chief Financial Officer (CFO): Also reporting directly to the CEO, the CFO is responsible for analyzing and reviewing financial data, reporting financial performance, preparing budgets, and monitoring expenditures and costs.

What does a COO do on a daily basis?

The chief operating officer (COO) is a senior executive tasked with overseeing the day-to-day administrative and operational functions of a business. The COO typically reports directly to the chief executive officer (CEO) and is considered to be second in the chain of command.

Can MD and CEO be the same person?

Section 203 of the Companies Act, 2013 (2013 Act) provides that an individual should not be appointed/reappointed as the chairperson of a company, as well as its Managing Director (MD) or Chief Executive officer (CEO), unless allowed by articles of a company or such a company does not undertake multiple businesses.

Is CFO mandatory for listed companies?

As per the Companies Act, 2013, Every listed company and every other public company having a paid-up share capital of ten crore rupees or more are required to appoint Chief Financial Officer (C.F.O.) as Key managerial personnel (KMP). … Though, a company can voluntary comply with this provision.

Is section 188 applicable to private companies?

It may be noted that section 188 is applicable to private companies for transactions with related parties specified under section 2 (76) – (other than those stated above). … Exemption is provided to private companies from section 43, if either its memorandum or articles of association so provides.

Which new type of company was introduced in Companies Act 2013?

A small company is a new form of a private company under the Companies Act, 2013. A classification of a private company into a small company is based on its size i.e. paid-up capital and turnover. In other words, such companies are small-sized private companies.

Who is a KMP?

Key Managerial Personnel (KMP) or Key Management Personnel refers to the employees of a company who are vested with the most important roles and functionalities. … The Companies Act mandates certain classes of companies to include such personnel in its ranks.

What is Section 188 of Companies Act 2013?

Section 188 of Companies Act 2013 is about Related Party Transactions and applicable to both Private and Public limited company and is applicable from 1St April 2014. These clauses include the relatives also.

Is whole time director a KMP?

A KMP can be appointed as Director in any other Company subject to approval of Board of Directors. Legally KMP is Whole time Employee of Company therefore, KMP can be appointed only as Non-executive Director in any other Company.

Can a person be MD in two companies?

→ A company may appoint or employ a person as its MD, if he is the MD or Manager of one and not more than one other company. {Such person should not be MD in more than one Company at the time of appointment, But he can be Director in any no. of Company as allowed by Companies Act, 2013.

Where is form MGT 14 useful?

Purpose of Filing Meetings of the Board of Directors/Shareholders/Creditors are held, and resolutions are passed at the said meetings. The resolutions have to be filed with the ROC by the company or liquidator as the case may be. Such resolutions are filed in form MGT-14.

Who appoints the top management of the company?

Appointment of Managing Director: A managing director is appointed by the Board of Directors subject to the approval of the Central govt. He is appointed at the first instance for the period of five years which can extend for a period of another five years.