CMA Intermediate · Business Laws and Ethics · Key Managerial Personnel
Under Section 203 of the Companies Act, 2013, which of the following is NOT listed among the whole-time key managerial personnel that a prescribed class of companies must have?
Chief Internal Auditor is not a mandatory whole-time KMP under Section 203(1). The section requires a managing director, CEO or manager (or a whole-time director in their absence), a company secretary and a Chief Financial Officer in prescribed classes of companies.
- AManaging director, or Chief Executive Officer or manager
- BCompany secretary
- CChief Financial Officer
- DChief Internal AuditorCorrect
Explanation
Section 203(1) lists three whole-time KMP: managing director/CEO/manager (or a whole-time director in their absence), company secretary, and Chief Financial Officer. A Chief Internal Auditor is not in this list, so it is the odd one out.
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.
More Key Managerial Personnel questions
- Although Section 194 has been omitted, the Companies Act, 2013 still requires a company to track the securities held by its directors and KM…
- Under Section 170 of the Companies Act, 2013, a company appoints a new Chief Financial Officer on 1 March. Within what period must the retur…
- Meera, a KMP of Zenith Ltd., fails to disclose her interest in an item of special business in the explanatory statement to a general meeting…
- The managing director of Sundaram Ltd resigns, and the office of a whole-time KMP falls vacant on 1 July. A shareholder argues that the vaca…
- How must a whole-time key managerial personnel of a company be appointed under Section 203 of the Companies Act, 2013?
- Under Section 203(2), how must a whole-time key managerial personnel of a company be appointed?