Who Is Not A KMP?

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..

Who comes under 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).

Is CFO A KMP?

The CFO need not be a director of the company. However he has been recognised as a KMP under Section 203 and his designation is equated with other managerial personnel such as the managing director, the manager or in their absence, the whole time director.

Is managing 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.

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.

Are treasurer and CFO the same?

The role of a CFO is similar to a treasurer or controller because they are responsible for managing the finance and accounting divisions and for ensuring that the company’s financial reports are accurate and completed in a timely manner. Many have a CMA designation.

Can a CEO be a company secretary?

A company secretary can be the CEO of the company too, which keeps his/her position close to the board of directors.

What is mean by KMP?

Key Managerial PersonnelKey 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.

Are all directors KMP?

A whole time KMP shall not hold office in more than one company except in its subsidiary company at the same time; A whole time KMP can be appointed as director (non-executive) in any other company with the permission of the Board of directors of the company where he is appointed as whole time KMP; and.

Does CEO mean owner?

The title of CEO is typically given to someone by the board of directors. Owner as a job title is earned by sole proprietors and entrepreneurs who have total ownership of the business. But these job titles are not mutually exclusive — CEOs can be owners and owners can be CEOs.

Are Non Executive Directors key management personnel?

The definition of key management personnel explicitly includes directors “whether executive or otherwise”. Non-executives may not be seen by some as part of management. … Nevertheless, FRS 102 is clear that non-executive directors are to be included in key management personnel.

Can a company have 2 CFO?

Though, a company can voluntary comply with this provision. Note that a Chief Financial Officer (C.F.O.) who is appointed as key Managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time except, Chief Financial Officer (C.F.O.)