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CA Foundation · Business Laws · The Companies Act, 2013

Nirmal Steel Ltd is a listed company. Its board wants to know who counts as Key Managerial Personnel (KMP) under the Companies Act, 2013. Which of the following is NOT KMP of a listed company?

An independent director is not Key Managerial Personnel. KMP includes the CEO, managing director or manager, company secretary, whole-time director and chief financial officer. Independent directors are non-executive members of the board and are not part of the executive management team listed in the definition.

  1. ACompany Secretary
  2. BChief Financial Officer
  3. CIndependent directorCorrect
  4. DManaging Director or CEO

Explanation

KMP includes the CEO or managing director or manager, the company secretary, the whole-time director, the chief financial officer, and such other officer as prescribed. An independent director is a non-executive director and is not KMP. The other options are specifically listed in the definition.

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