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CMA Final · Corporate and Economic Laws · Board of Directors and Key Managerial Personnel

Under Section 203, which statement about the appointment of whole-time key managerial personnel is correct?

Whole-time key managerial personnel must be appointed by a resolution of the Board that sets out the terms and conditions of appointment, including remuneration. Section 203(2) does not require a members' resolution or approval from the Registrar for such appointments.

  1. AIt must be made by a resolution of the Board containing the terms and conditions, including remunerationCorrect
  2. BIt must be made by an ordinary resolution of members in general meeting
  3. CIt must be made by the Nomination Committee alone without a Board resolution
  4. DIt must be approved by the Registrar before it takes effect

Explanation

Section 203(2) provides that every whole-time KMP shall be appointed by a Board resolution containing the terms and conditions of appointment, including remuneration. The Act does not require a members' resolution or Registrar approval for this under Section 203.

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