Appointment of key managerial personnel requires board resolution, limits dual office holding, and risks penalties for non-compliance. Companies of prescribed classes must appoint specified whole-time key managerial personnel-a managing director/CEO/manager (or whole-time director in absence) and a company secretary-by Board resolution stating terms including remuneration. Whole-time KMPs cannot hold such office in more than one company except in a subsidiary; those holding multiple offices at commencement must choose one within six months. Boards must fill vacancies within six months. Limited exceptions allow dual appointment with specific notice and unanimous director consent. Contraventions attract statutory fines on the company and defaulting officers, with additional daily penalties for continued breaches.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Appointment of key managerial personnel requires board resolution, limits dual office holding, and risks penalties for non-compliance.
Companies of prescribed classes must appoint specified whole-time key managerial personnel-a managing director/CEO/manager (or whole-time director in absence) and a company secretary-by Board resolution stating terms including remuneration. Whole-time KMPs cannot hold such office in more than one company except in a subsidiary; those holding multiple offices at commencement must choose one within six months. Boards must fill vacancies within six months. Limited exceptions allow dual appointment with specific notice and unanimous director consent. Contraventions attract statutory fines on the company and defaulting officers, with additional daily penalties for continued breaches.
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