Appointment of kmp

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can a company appoint one as kmp of company who has already holding office as kmp of other company?
Replies (3)
As per Sec 203(3) of The Companies Act, 2013 "A whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time:

Provided that nothing contained in this sub-section shall disentitle a key managerial personnel from being a director of any company with the permission of the Board:

Provided further that whole-time key managerial personnel holding office in more than one company at the same time on the date of commencement of this Act, shall, within a period of six months from such commencement, choose one company, in which he wishes to continue to hold the office of key managerial personnel:

Provided also that a company may appoint or employ a person as its managing director, if he is the managing director or manager of one, and of not more than one, other company and such appointment or employment is made or approved by a resolution passed at a meeting of the Board with the consent of all the directors present at the meeting and of which meeting, and of the resolution to be moved thereat, specific notice has been given to all the directors then in India."

Thus, a person can be appointed as KMP of more than one company provided he fulfils the requirements given in this sub-section.

Exception has been provided for MD/WTD only......For KMP......same can be appointed in its wholly owned subsidiary only,........not in any other company

Yes if he is a Managing Director or the two companies have holding subsidiary relationship. but twist is that this section is applicable to public company only.


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