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

Varun Textiles Ltd has a managing director, a company secretary and a chief financial officer, all appointed whole-time by Board resolution. Which of the following, as per the Companies Act, 2013 text on appointment, is a whole-time key managerial personnel the company is required to have where it falls in the prescribed class?

The Chief Financial Officer is a whole-time key managerial personnel under Section 203(1). The section names the MD or CEO or manager, the company secretary and the CFO. Internal auditors, independent directors and cost auditors are not listed there.

  1. AChief Financial OfficerCorrect
  2. BInternal auditor
  3. CIndependent director
  4. DCost auditor

Explanation

Section 203(1) lists the whole-time KMP as managing director or CEO or manager (and in their absence a whole-time director), the company secretary, and the Chief Financial Officer. Internal auditor, independent director and cost auditor are not in that list.

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