Skip to content

CMA Intermediate · Business Laws and Ethics · Key Managerial Personnel

The Chief Financial Officer of Arjun Textiles Ltd. resigns on 1 March, leaving the office vacant. Under Section 203(4), within what period must the Board fill the vacancy at a Board meeting?

The Board must fill the vacancy within six months from the date it arose, at a meeting of the Board, under Section 203(4). The thirty-day period relates to filing a return of change with the Registrar, not to filling the office.

  1. AThirty days from the vacancy
  2. BThree months from the vacancy
  3. CSix months from the vacancyCorrect
  4. DOne year from the vacancy

Explanation

Section 203(4) requires a vacancy in the office of any whole-time KMP to be filled by the Board at a Board meeting within six months from the date of vacancy. Thirty days is the time for filing a return with the Registrar under Section 170(2), not for filling the vacancy.

Did you get it right without looking?

One question tells you little. A timed set on Key Managerial Personnel shows your real accuracy, how long you take and where you lose marks.

Practise Key Managerial PersonnelFree diagnostic mock

More Key Managerial Personnel questions