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CMA Intermediate · Business Laws and Ethics · Key Managerial Personnel

Under the Companies Act, 2013, which of the following is NOT one of the whole-time key managerial personnel that a prescribed class of company must have under Section 203(1)?

The internal auditor is not a whole-time key managerial personnel under Section 203(1). That provision requires the managing director or CEO or manager (or a whole-time director in their absence), a company secretary and a Chief Financial Officer in prescribed classes of companies.

  1. ACompany secretary
  2. BChief Financial Officer
  3. CManaging director, or Chief Executive Officer or manager (and in their absence, a whole-time director)
  4. DInternal auditorCorrect

Explanation

Section 203(1) lists three whole-time KMP: the managing director or CEO or manager (a whole-time director in their absence), the company secretary and the Chief Financial Officer. An internal auditor is not in this list, so it is the item that is not required as whole-time KMP under that provision.

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