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CS Executive · Company Law and Practice · Key Managerial Personnel and their Remuneration

Arjun is the whole-time CS of Delta Ltd, and its remuneration is fixed by the Board. Delta Ltd wants him to also hold office as a whole-time KMP in an unrelated company, Omega Ltd. Under section 203, what is the position?

A whole-time key managerial personnel cannot hold office in more than one company at the same time, except in its subsidiary company. Since Omega Ltd is unrelated, Arjun cannot hold both offices, whatever the remuneration arrangement.

  1. APermitted without any condition
  2. BPermitted only with Registrar approval
  3. CNot permitted, since a whole-time KMP cannot hold office in more than one company except its subsidiaryCorrect
  4. DPermitted if remuneration is split equally

Explanation

Section 203(3) bars a whole-time KMP from holding office in more than one company at the same time, except in its subsidiary company. Omega is unrelated, and splitting remuneration is irrelevant.

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