Key Managerial Person under Companies Act, 2013

[Jyoti Cs]

Dear all,

Greetings.

As per Sec 2(51) and also Sec 203(1),

Key Managerial Person

will cover:

(i) the Chief Executive Officer or the managing director or the manager;

(ii) the company secretary;

(iii) the whole-time director;

(iv) the Chief Financial Officer; and

(v) such other officer as may be prescribed;

It seems no other officer has been named as Key Managerial Person under clause v of sec 2(51).

In few presentations by top firms, I find that Key Managerial Person will include 

Any person in 'senior management' in company. Term 'Senior Management' as provided in explanation to Sec. 178, means "personnel of the company who are members of its core management team excluding Board of Directors comprising all members of management one level below the executive directors, including the functional heads"

Whether 'Key Managerial Person' includes "Any person in senior management in company"? Request views from members.

Best Regards,
Jyoti

[Bhavani Prasad]

Dear friend

As elucidated in definition Sec 2 (51) (v) such other officer as may be prescribed.... it is the prerogative of the management to decide who to be in the position of KMP.

Just because of the reason that a person is in the Senior management he cant be included in definition.

What i feel is the senior management should not be inferred from the point of view of Sec 178 but in totality it depends on his experience/exposure in the various fields of management

Others views solicited

Regards

CS Bhavani Prasad C N
Company Secretary
098665 19059

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[Aditya Rungta]

Along with section 178, also refer code of conduct of the Company

 

Regards

Aditya Rungta

Company Secretary

[Madhur Agrawal]

Dear friends,

Clause V of the Sec 2 (51) says 'as prescribed' which means as prescribed by the rules.

The company can not declare anyone apart from what is notified, as KMP. So even if certain person to be named as KMP, no matter how senior he/she is, shall be notified under the said clause by the MCA.

[CS.Omkar]

Dear all,

Agree with the view of Mr. Madhur. Sec 2(51)(v), ‘such other officer as may be prescribed’ means any other officer prescribed to be as Key Managerial Person (KMP) by the Ministry of Corporate Affairs (MCA) in Rules/Notification. So far, to my knowledge, no such other officer has been prescribed as KMP in the draft Rules released by MCA.

Members... please do share if you have any other views/additional information on this subject.

Regards...Omkar

[Jyoti Cs]

Thank you all for views. As I understand person in Senior Management will not be KMP as per KMP definition stands today. 

Please let me know if any inputs which supports including person in Senior Management as KMP.   

Best Regards,

Jyoti

[Madhur Agrawal]

Dear Jyoti,

As clarified earlier, a designation shall be notified by the MCA as KMP under the said section to call it 'a KMP'.

A company suo motto can not declare any person as KMP.

[Cs Shanu]

Is there any list of duties and responsibility of KMP as per new CA

[Cs Shanu]

Dear professionals,

Is it mandatory for Unlisted public Co. to appoint CFO.

REgards

Shanu

[CS A Rengarajan]

rules  are  yet  to  br  notified  and  if  it  fulfills  the criteria,  laid  down  in  rules  then  unlisted  public  co  has  to  appoint  cfo  

regards

 

CS A Rengarajan

9381011200

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[Bhavani Prasad]

As per Rule 13.6 read with Sec 203 of Companies Act 2013,every company with a paid-up capital of Rs 5 Cr or more shall appoint a CFO

Rules are yet to be notified please.

Regards

CS Bhavani Prasad C N
Company Secretary
098665 19059

[Cs Shanu]

But, Section 203 is not notified yet