08 May 2014
Can the same person be appointed as full time MD in two companies? Act stipulates that KMP should be in whole-time employment of the company.It also says that a KMP of a company can also be KMP in its subsidiary.
08 May 2014
As per 203(3), A whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time. And this is not for simple Directorship, because, provision related to simple appointment as director is defined in proviso to the same section.
09 May 2014
As far as remuneration part is concerned in case of appointment in 2 or more companies, part V of schedule V needs to be referred which says:
Section V. —Remuneration payable to a managerial person in two companies:
Subject to the provisions of sections I to IV, a managerial person shall draw remuneration from one or both companies, provided that the total remuneration drawn from the companies does not exceed the higher maximum limit admissible from any one of the companies of which he is a managerial person.
09 May 2014
Mr. Gupta, Thanks for your comments.I agree that remuneration payable to managerial person working in 2 companies have been specified in schedule V.However,its not yet clear whether same MD can work on full time basis in 2 companies.Act stipulates that KMP should be in full time employment of the company.
09 May 2014
As per section 2(51) of the Companies Act,2013,definition of KMP inter-alia includes CEO or M.D. or Manager.You may kindly go through that section to remove your doubt.Once again thanks for sharing your knowledge.
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