Query on cfo appointment

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2014 Dear Sir,

This is with reference to the subjected matter. Section 203 of Companies Act, 2013 and rules thereon for mandatory requirement of Chief Financial Officer is not applicable to Private Limited Company and as per Section 2 (19) of Companies Act 2013 Chief Financial Officer means a person appointed as Chief Financial Officer of Company.

My query is that we have appointed a person as a Chief Financial Officer of the Company before the applicability of Companies Act 2013 and not by the Board of the Company.

In this case, Please suggest which option we are required to be adopted:

1. If that person is using the designation as a Chief Financial Officer, we need to change his designation?
2. We need to regularize his appointment by the Board Meeting.
3. He can use the same designation (Chief Financial Officer) without any appointment in the Board.

Please let us know your valuable comments on the same.

Ca Jai Prakash Agarwal

Ca Jai Prakash Agarwal (Expert)

01 October 2014 Kindly arrange to see that there is mandatory requirement for a Private company to appoint a CFO but the company may appoint the CFO voluntarily and designate him Key managerial personnel.

For appointment of KMP, it is required that the Board resolution is passed.

Pls see that in Act, there is no restriction of using the designation CFO but it is suggested that if company want to keep him as a KMP, the appointment may be regularised.

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