Related party - key management personnel

Dear CA friends!

Kindly guide me whether in the instant case Mr.X is a key management personnel

Mr. X holds 50% shares in ABC Pvt Ltd. Mr. X is a director of the said company.Mr.X does not receive any remuneration friom the company. He gets only his share of dividend. He is not a managing director or whole time director. Whether Mr. X is a key management personnel as per AS-18?? 

Also, is he a key management personnel as defined by Companies Act, 1956. 

Kindly clarify.

Replies (1)

As per Accounting Standard Interpretation, Key Management Personnel means those persons who have the authority and responsibility for planning, directing and controlling the activities of the reporting enterprise. It can be managing director, whole time director, manager & any other person with whose directions BOD is accustomed to act. While under companies act, 1956 managing director (section 2(26)), whole time director & manager (section 2(24)) meaning thereof is separately defined.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details