Eligibility for becoming a CEO

Co Act 2013 2920 views 5 replies

Guest

Hello,

Please bear with me as I don't have much knowledge of this.

What is the minimum age to be appointed as a CEO of a Private Limited company? On some websites, they say there is no minimum age and on some, they say there is. Can a minor be appointed as a CEO?

Because in the companies act, its mentioned that a WTD, MD, and Manager can't be appointed if they are less than 21, but what about a CEO? The law is very unclear in this regard. It also doesn't mention the minimum age to get a DIN, but yet MCA restricts the age to 18. Why is this?

And, can a minor be appointed as a KMP too, if he is eligible to be appointed as a CEO?

Thanks,
Aniketh Chavare

Replies (5)

Quick Summary

Under the Companies Act, there is no specific minimum age prescribed for appointment as CEO of a private limited company. However, since a minor is not competent to contract under the Indian Contract Act, a CEO should generally be at least 18 years old. KMP eligibility depends on company type and regulatory requirements.

kinnari Mistri

Student - MBA in Finance

4 Points Posted on 18 January 2023

If you check this link: https://medium.com/ @ theglobalbusinessmagazine/list-of-youngest-indian-ceos-and-entrepreneurs-in-india-8f87c2cd7efa , you will realise that there is no minimum age to become CEO if one is enterpreneur because in small companies owner themselves run whole business. However, first one need to understand CEO's role. CEO is position with full responsbility to look after whole company ,manage daily operations. so one need to develope different skills like leadership skills, decision -making skills , communication & convincing skills & many others. One needs to be updated be with industry trends & news on daily basis.

Guest

Thanks for this Kinnari. But as a CEO, you become a KMP. So, is there any eligibility to become a KMP in the first place? If I'm a CEO and not a KMP, then what's the use of it anyways.

kinnari Mistri

Student - MBA in Finance

4 Points Posted on 18 January 2023

Hello Aniketh,

As per companies Act 2013, whole time KMP is required to be appointed by every listed public companies having paid up share capital more than ten crore. However, Its not applicable to private limited companies nor it prohibit them to do so.

Guest

Yes, I have read it in one of the articles on the internet, but can you please clarify the eligibility to be a KMP in a private limited (experience, age requirement, etc). This would be really helpful.

Jatin Bajaj

2942 Points Posted on 25 January 2023

As per the provisions of the Companies Act, there is no such provisions in the Companies Act 2013 which talks about the minimum age criteria or qualification of CEO but in general parlance and subject to the provisions of the Indian Contract Act 1872, a minor is not competent to act and such act by the minor is void ab initio. So at least minimum age of CEO should be 18 years or more.