The article outlines the requirements for appointing Key Managerial Personnel (KMP) as per Section 203 of the Companies Act, 2013. It details compliance thresholds applicable to various company types.
FAQ on Key Managerial Personnel under Section 203 of Companies Act, 2013
This article clarifies the requirements for appointing Key Managerial Personnel (KMP) as mandated by Section 203 of the Companies Act, 2013. It delineates which companies are obligated to appoint KMP based on criteria such as paid-up capital and turnover.
The guidelines stipulate that listed companies, public companies, and certain private companies must adhere to these requirements to ensure effective governance. The positions identified under KMP include the CEO, CFO, and Company Secretary, among others, each playing a pivotal role in corporate management.
Lawyers representing companies must ensure adherence to the KMP regulations to avoid statutory penalties. Regular audits of executive appointments against compliance requirements are advisable.
