Related party - key management personnel

aishwarya s raghavan (student) (224 Points)

10 April 2014  

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.