TaxTMI 
TaxTMI 
Can a KPM of a holding company become a KPM in a subsidiary company? If yes, is it permissible for them to receive a salary from the subsidiary company instead of the holding company?
Role Transition and Salary Arrangements for KMP
08 Mar 2025 
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Key Managerial Personnel dual appointment permitted with board approval and compliant subsidiary-paid remuneration under statutory limits.
Appointment of the same person as Key Managerial Personnel in a holding company and its subsidiary is permissible provided both boards pass resolutions, the individual discloses conflicts of interest, and contractual and AoA provisions permit the arrangement. A subsidiary may pay the KMP's salary if the subsidiary's board approves terms, the remuneration conforms to limits under the Companies Act, 2013 (or secured exemptions), disclosures are made in financial statements, and tax and reporting obligations are satisfied. (AI Summary)
Appointment of the same person as Key Managerial Personnel in a holding company and its subsidiary is permissible provided both boards pass resolutions, the individual discloses conflicts of interest, and contractual and AoA provisions permit the arrangement. A subsidiary may pay the KMP's salary if the subsidiary's board approves terms, the remuneration conforms to limits under the Companies Act, 2013 (or secured exemptions), disclosures are made in financial statements, and tax and reporting obligations are satisfied. (AI Summary)