CS Executive · Company Law and Practice · Key Managerial Personnel and their Remuneration
Aarav Kulkarni is appointed as the company secretary of Bharat Textiles Ltd, which must have whole-time KMP. How must his appointment be made?
A whole-time key managerial personnel such as the company secretary is appointed by a Board resolution that sets out the terms and conditions of appointment, including remuneration, as section 203(2) provides. A members' resolution is not required under that sub-section.
- ABy an ordinary resolution of members at a general meeting
- BBy a Board resolution containing the terms and conditions including remunerationCorrect
- CBy a special resolution of members
- DBy an order of the Registrar
Explanation
Section 203(2) requires every whole-time KMP to be appointed by a resolution of the Board containing the terms and conditions of appointment, including remuneration. No members' resolution is required for this under that sub-section.
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