Query regarding cfo

There is no provision for appointment of CFO under Companies Act, 1956  except in Clause 49 of Listing Agreement. 

There is no requirement  under Companies Act, that a Company  which has MD is not Required to have CFO , as defined in Clause 49(V) that the CEO means the Managing Director or the Manager appointed under Companies Act,1956 and CFO means  the Whole time finance Director or any other person heading the finance function.

Yes, there is no provision under the Companies Act 1956 regarding mandatory appointment of a CFO. Even the Listing Agreement does not clearly mandate regarding appointing a CFO. Only from few clauses we can infer that a person called as ‘CFO’ is required to comply few clauses of the Listing agreement.

As per clause 49(II)(D)(12A), a CFO means, “the  whole-time  Finance  Director  or  any other person heading the finance function or discharging that function”.

Further, as per clause 49(V), CEO (MD) & CFO both are required to make a certification to the Board regarding maintenance of internal controls.

As per the Agreement, a covering letter of the annual audit report has to be filed with the Stock Exchange. It has to be signed by a CEO, CFO, auditor of the company and the Chairman of the Audit Committee.

Thus, appointment of a ‘CFO’ along with an MD is necessary for complying with the clauses of the listing Agreement.

Regards,

Veeral Gandhi

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Agree with the learned members.... Appointment of CFO is required under listing agreement but ther is no such requirement under companies act.

So far there is no provision for appointment of CFO under company law.
In the amendment bill there is a mention about CFO reg. certification along with CEO.

In case of term loans, there will be a condition that the company appoints a CFO etc.

In case of listing also there will be similar provisions.

Regards,

RAJESH CHOUDHARY