30 March 2015
Rule 8 says that a listed co. And other public co. Having paid up capital 10 crore or more shall have KMP and read together 8A says that "other than a company" Covered under rule 8 which has a paid up capital 5 crore or more shall have a whole time CS ...... My question to all my friends and worthy experts is that 1- whether pvt. Ltd co. Will be included in "other than company" or not....... ? 2- whether CS appointed by unlisted co. Having paid up capital exceed 5 crore but below 10 crore shall be treated as KMP or not......?
30 March 2015
1. Yes. 2. Yes. CS appointed by unlisted company shall be trated as KMP
The definition of Key Managerial Personnel under section 2 (51) includes a company secretary. Thus, where a company appoints a company secretary, whether mandated by law or not, he will be treated as a KMP. Accordingly, the company secretary appointed pursuant to Rule 8A would be treated as a KMP of the Company and such a person would need to abide by the provisions of Section 205 of the Act,2013 (relating to functions of company secretary). Such a person would also be treated as an officer in default and the liabilities of a KMP would be equally applicable on him.
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