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CS Executive · Company Law and Practice · Key Managerial Personnel and their Remuneration

Under the Companies Act, 2013, which of the following sets of whole-time key managerial personnel must a prescribed class of company have under section 203(1)?

A prescribed class of company must have a managing director, or Chief Executive Officer or manager (and in their absence a whole-time director), plus a company secretary and a Chief Financial Officer as whole-time key managerial personnel under section 203(1).

  1. AManaging director, or Chief Executive Officer or manager (and in their absence a whole-time director); company secretary; and Chief Financial OfficerCorrect
  2. BChairperson, managing director and Chief Executive Officer only
  3. CCompany secretary and statutory auditor only
  4. DManaging director, internal auditor and cost auditor

Explanation

Section 203(1) lists three whole-time KMP positions: MD or CEO or manager (a whole-time director in their absence), the company secretary and the CFO. The chairperson, auditors and cost auditors are not in this list.

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