I had not seen your comment earlier.Hence the delay in replying.
In my opinion as Section 203 is a specific provision which deals with appointment of KMPs only those persons who are appointed KMPs pursuant to the requirements will be considered as KMPs for the purposes of KMPS although they come within the definition of the term under Section 2(51).Section 203 being a specific provision will prevail over the definition provision.
Kalidas Sir, Kindly resolve one confusion. Say if a Private limited company having capital of 1 cr only appoints MD/WTD/CS on its board, then as the company is not required to appoint KMP as per statute, would this MD/WTD/CS be not treated as KMP?
The definition of KMP as per section 2(51) states "key managerial personnel", in relation to a company, means—
(i) the Chief Executive Officer or the managing director or the manager;
(ii) the company secretary;
(iii) the whole-time director;
(iv) the Chief Financial Officer; and
(v) such other officer as may be prescribed;
So, if KMP means MD/WTD/CS, then any company (pvt) appointing them, whether required or not, should comply with the provision for KMP appointment.
In the above article it is considered that CS appointed under rule 8A is not a KMP, but if KMP means CS then how we should not treat him/her as KMP? If we don't treat him KMP then they can be appointed through circular resolution. Is this possible?
obviously a foolish Act indeed; i some times wondered why the judiciary did not question the very validity of the Act; 1956 Act was more sensible but this Act most insensible as it is some jumble of misunderstandings. law makers can only make such jumbles so the law making ids the most untrustworthy exercise. Any way this is so called independent india when there is nothing called independent but interdependent only is the real fact.
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