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CMA Intermediate · Business Laws and Ethics · Key Managerial Personnel

Although Section 194 has been omitted, the Companies Act, 2013 still requires a company to track the securities held by its directors and KMP. Which provision does this?

Section 170 requires every company to keep at its registered office a register of directors and key managerial personnel, including details of securities each holds in the company or its holding, subsidiary, fellow subsidiary or associate companies. This replaces the omitted forward-dealing prohibition as a transparency measure.

  1. ASection 21, through authentication of documents
  2. BSection 102, through the explanatory statement for general meetings
  3. CSection 170, through the register of directors and key managerial personnel including their securities holdingsCorrect
  4. DSection 203(4), through filling of vacancies within six months

Explanation

Section 170(1) requires a register at the registered office with particulars of directors and KMP, including details of securities held by each in the company or its holding, subsidiary, fellow subsidiary or associate companies. The other sections deal with authentication, meeting statements and vacancies, not shareholding records.

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