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CMA Intermediate · Business Laws and Ethics · Key Managerial Personnel

The Chief Financial Officer of Kaveri Textiles Ltd. resigns on 1 March, and the office falls vacant. Under Section 203 of the Companies Act, 2013, by when must the Board fill the vacancy at a Board meeting?

The Board must fill the vacancy at a Board meeting within six months from the date the office fell vacant. Section 203(4) sets this period for any whole-time KMP, including the CFO. The thirty-day period applies to filing a return with the Registrar, not to filling the post.

  1. AWithin thirty days from the date of vacancy
  2. BWithin three months from the date of vacancy
  3. CWithin six months from the date of vacancyCorrect
  4. DAt the next annual general meeting

Explanation

Section 203(4) provides that a vacancy in the office of any whole-time KMP shall be filled by the Board at a Board meeting within six months from the date of vacancy. The thirty-day period relates to filing a return with the Registrar under Section 170, not to filling the vacancy.

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