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

Sagar Foods Ltd appoints Mr. Vikas Pillai as Chief Financial Officer on 1 April. The company has filed no return with the Registrar. Which obligation under Section 170 has the company failed to meet?

The company has failed to file a return of the CFO's particulars with the Registrar within thirty days of his appointment. Section 170(2) covers every director and key managerial personnel, and a CFO is a key managerial personnel, regardless of any shareholding.

  1. AEntering him in a register kept at the registered office only, with no return required for a CFO
  2. BFiling a return of his particulars with the Registrar within thirty days of appointmentCorrect
  3. CFiling a return only if he holds securities in the company
  4. DFiling a return within six months of appointment

Explanation

Section 170(2) applies to every director and key managerial personnel, and a CFO is a whole-time KMP under Section 203(1). The return is due within thirty days of appointment. It is not limited to directors or to those holding securities, and six months is the period in Section 203(4) for filling a vacancy.

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