21 June 2018
A Person who is a member of ICSI and also of ICAI can be appointed as a CS and CFO of a Company?. Is it allowed to hold two positions at one time under Companies ACT,2013?
21 June 2018
CS & CFO are Whole time KMP. It has been provided under the Act that a whole time KMP shall not hold office in more than one company at the same time except in the Company's subsidiary Company.
In your case a person can be CFO in one company and CS in subsidiary company or vice versa.
21 June 2018
Although there is no explicit restriction under the Companies Act, 2013 for appointment of the same person as CS and CFO, however, if we peruse Section 203 carefully, it mentions "Every company shall have the following whole time KMP-(1) MD/CEO/Manager/WTD, (2) CS, and (3) CFO. With this interpretation, it can be interpreted that all above three KMPs shall be appointed by the company classified u/s 203. Hence, the same person cannot be appointed as CFO and CS in the same Company. However, if a company is not covered u/s 203, then appointing same person for two position is not restricted.
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