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CS Executive · Company Law and Practice · Directors

A general meeting of Sagar Infra Ltd is to consider an item of special business in which a KMP has an interest. What must the statement annexed to the notice disclose about the KMP?

The statement must disclose the nature of concern or interest, financial or otherwise, of the key managerial personnel and of their relatives, along with that of directors and any manager. The Companies Act, 2013 does not limit this disclosure to directors.

  1. AOnly the KMP's annual remuneration
  2. BNature of concern or interest, financial or otherwise, of the KMP and of relativesCorrect
  3. COnly the KMP's shareholding in the company, with no reference to relatives
  4. DNothing, as disclosure applies only to directors

Explanation

Section 102(1)(a) requires the statement to set out the nature of concern or interest, financial or otherwise, of every director and manager, every other KMP, and their relatives. Directors alone are not covered, so the last option is wrong.

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