Appiontment of ceo

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This query is : Resolved

Ashwani Narnoli (Querist)

01 July 2016 Can a person hold office as CEO in two private companies at the same time if he is a director in only one company. Further he is not receiving any remuneration from any company.

Jatin Bajaj

Jatin Bajaj (Expert)

01 July 2016 Kindly refer section 203, read with section 2(51) of companies act 2013, as per the above sections CEO is included in the defination of KMP of the company. And according to section 203(3), A whole timee KMP shall not hold office in more than 1 company at the same time except its subsidiary Company.
Provided that nothing in this subsection shall disentitle a KMP from becoming a Director of Company with permission of the Board.
So it does not matter weather the person is the Director of the Company or not

Ashwani Narnoli

Ashwani Narnoli (Expert)

01 July 2016 I am asking whether it is applicable for private company also

c.bakshi

c.bakshi (Expert)

02 July 2016 Section 203 is applicable is case of every listed company and every other public company having paid up capital of ten crore or more as per rule 8 of Companies (Appointment and remuneration of Managerial Personnel) Rules, 2014. However, i agreed with Mr. Jatin, the person holding such designation may or may not be director of the company. i suggest you just give him designation of CEO subject to the condition that he/she will not draw any salary as director from the company otherwise he will come under the definition of "Whole Time Director" No person can be whole time director in two company at the same time.

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