Appointment of KMP in another company

[Pooja Agnihotri]

Dear Professional friends, 

I have a Query:

Can a KMP ( CFO ) of a Listed Company be a Director in casual Vacancy in another company, which in not a holding company or subsidiary company. Is there any requirement of apporval from the Board of the Company where he is KMP, for holding such office( casuail Vacancy)?

Please guide on this? 

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Regards!!!!

 

Pooja Agnihotri

[sachin kumar]

I think no.

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[Pooja Agnihotri]

Section 203(3) says that

"A whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time:

"Provided that nothing contained in this sub-section shall disentitle a key managerial personnel from being a director of any company with the permission of the Board: "

Is there any deadline or any format for such permission from the Board?

Please clarify

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Regards!!!!

 

Pooja Agnihotri

[Venkat Ragavan]

Pls read next para also:

Provided further that whole-time key managerial personnel holding office in more than one company at the same time on the date of commencement of this Act, shall, within a period

of six months from such commencement, choose one company, in which he wishes to continue to hold the office of key managerial personnel:

[Pooja Agnihotri]

"Provided further that whole-time key managerial personnel holding office in more than one company at the same time on the date of commencement of this Act, shall, within a period of six months from such commencement, choose one company, in which he wishes to continue to hold the office of key managerial personnel:" 

As per my interpretation :

The above proviso says about a KMP holding office as KMP in two co.s shall with 6 months choose to be KMP of one of the office, not of KMP holding office as director in other company.

other members views solicited.

[CS Ankit Misra]

U r rgt

regards,

ANKIT MISRA

COMPANY SECRETARY

REGENCY HOSPITAL LTD.

KANPUR

8009968692

 Please do not print this email unless absolutely necessary

[CS Ankit Misra]

Dear Pooja,

I agree with you as proviso to section 203(3) ends with with the permission of the board'

On Fri, May 23, 2014 at 3:58 PM, Venkat Ragavan <cs.venka...@gmail.com> wrote:

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[periwal...@gmail.com]

He can be director in casual vacancy with permission of Board in which he is CFO, but he cannot be a director in casual vacancy for a Whole Time Director.

 

 

Just read the whole sec 203 once again.

 

(3) A whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time:

 

Provided that nothing contained in this sub-section shall disentitle a key managerial personnel from being a director of any company with the permission of the Board:

[Pooja Agnihotri]

I agree with ur views that A KMP cannot be a WTD in another company,,,which is self explanatory in the section" Whole Time KMP".. but he can be a director ( not a WTD ) in another company as given in proviso to the Section.

Correct me If am wrong..

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Regards!!!!

 

Pooja Agnihotri

[VANDANA PERIWAL]

You are absolutely right Pooja.

 

and abhinav, office here means holding of any office as KMP.

Thanks and Regards
CS Vandana Periwal

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[CS Ankit Misra]

Yes, he can be. As there is no such restriction for appointment of KMP as Director in other Company. Pls refer sec 203 (3) of CA13. However, yo should avoid making him WTD / MD of other Company.

If the above condition satisfied, then there is no need to take Board's permission.

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[VANDANA PERIWAL]

No Mr. Ankit,

 

Board permission is still required.

Thanks and Regards
CS Vandana Periwal

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[Pooja Agnihotri]

thanks everyone ..for your views..

Regards!!!!

 

Pooja Agnihotri