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

Ms. Meera Shah, the company secretary of Orchid Foods Ltd, holds shares in the company's subsidiary and in an associate company, but none in Orchid Foods itself. For the register under Section 170(1), which statement is correct?

Her holdings in the subsidiary and the associate company must be shown. Section 170(1) extends the register to securities held by each director and KMP in the company or its holding, subsidiary, fellow subsidiary or associate companies, and a company secretary is a KMP.

  1. AHer holdings in the subsidiary and associate must also be shown, since the register covers securities held in the company or its holding, subsidiary, subsidiary of holding company or associate companiesCorrect
  2. BOnly shares held in Orchid Foods Ltd itself are recorded, so nothing is shown
  3. COnly holdings in the subsidiary are recorded, not associate companies
  4. DSecurities held in group companies are recorded only for directors, not for key managerial personnel

Explanation

Section 170(1) says the register must include details of securities held by each director and KMP in the company or its holding, subsidiary, subsidiary of the holding company or associate companies. The company secretary is a KMP, so her holdings in the subsidiary and associate are covered.

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