Time limit to appoint KMP (CFO)

[Tasneem Mandsorwala]

Dear All,

 

What is the time limit for appointment of KMPs as per the New Companies Act? We need to appoint a CFO in our Company, so would like to know the Date within which we have to appoint him. Also can an existing Whole time director be re-designated as a CFO? If yes, then pls let me what is the procedure for the same.

 

Thanks & Regards,
Tasneem

[CS Ankit Misra]

Vacancy of KMP should be filled within 6 months else treated as default. So, you must appoint CFO within 6 months of notification of sec 203 i.e. 30.09.2014.

Further, there is not restriction given that a person cannot hold 2 KMPs position in same company. So, you can re-designate WTD as CFO also.

To given more clarity, as given in last page of July edition of Chartered Secretary, Company Secretary of Ghari Group has been given additional charge of CFO as well.

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regards,

ANKIT MISRA

COMPANY SECRETARY

REGENCY HOSPITAL LTD.

KANPUR

8009968692

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[CS Raman]

I understand from the provisions of Section 203 that in few companies, positions like CEO or CFO would be a new altogether. Therefore, such appointment of CEO or CFO needs to be done under the prescribed Rules. Time limit of 6 months prescribed under Section 203(4) is applicable only for KMP positions that get vacated after the notification date of Section 203, i.e. w.e.f. 1st April 2014.

However, time within which the new position (like CEO or CFO) has to be filled is not mentioned anywhere. Can anyone please elaborate if the understanding is incorrect?

Thanks

[sachin kumar]

one person can hold only one position under kmp rule....