Quick Answer: Is Section 203 Applicable To Private Companies?

Which companies are required to appoint KMP?

Appointment of Key Managerial Personnel It is mandatory for any listed company and any company with a paid up capital of more than or equal to 10 lakhs to appoint a whole time KMP.

Further, a company with at least 5 lakhs paid-up capital is required to employ a full-time company secretary(who is also a KMP)..

Can a person be CFO of two companies?

Every whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time. However, he can be a director of any other company with the permission of the Board.

Can a CS be appointed in two companies?

As per Companies Act, 2013 Company Secretary shall be considered as Whole Time Key Managerial Personnel of Company. As per Section 203(3)(a) A whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time.

Is whole time director an employee?

A whole-time director refers to a director who has been in employment of the company on a fulltime basis and is also entitled to receive remuneration. … Further, a whole-time employee, when appointed as a director of the company, will be occupying the position as the whole-time director.

Can a director be whole time director in 2 companies?

Number of Directorships. — A person shall not hold office as a director in not more than 20 companies, including alternate directorship (under Section 165 of the Act). The appointee and the company in which he is appointed as Executive Director or whole-time Director shall confirm the same.

Can CFO be appointed as company secretary?

Alagarswamy has been appointed as Company Secretary & Compliance Officer and Chief Financial Officer of the Company pursuant to Section 203 of the Companies Act, 2013 and Regulation 6(1) and other applicable regulations of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) …

Is Mr 1 required to be filed by private companies?

MR-1: This form is required to be filed within 60 days of appointment of Managerial Personnel and required to file for the Company OTHER THAN Private Company and Government Company.

Can MD and CFO be the same person?

The CFO may be appointed either by the board of directors or by the managing director unless such person is designated as a key managerial person under section 203. … The CFO need not be a director of the company.

Is section 197 applicable to private companies?

This section is not applicable to Private company. Section 197 pertaining to cap on overall managerial remuneration in case of profit, in case of absence or inadequacy of profits and Schedule V are not applicable.

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.

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 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.

What is the difference between whole time director and director?

A Director who is appointed from amongst the Directors as a Chief Executive Officer and entrusted with the substantial powers of management is called a Managing Director. A Director Who is appointed by the company under a special contract of service as a full-time employee is called a Whole-time Director.

Is a managing director higher than a director?

The managing director is the highest management position in a company, and the director works beneath the managing director. At a large company, there are typically many directors who work under the managing director.

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.