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.

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