Helpful tips 

Who comes under KMP?

Joe Ford

Who comes under KMP?

According to Section 2(51) of the Companies Act 2013, Key Managerial Personnel in a Company are: -Chief executive Officer (CEO) OR the Managing Director. -Chief Financial Officer (CFO).

Who all are KMP?

Under Section 2 of the Companies Act 2013, Key Managerial Personnel in reference to a company are as follows:

  • Chief Executive Officer/Managing Director.
  • Company Secretary.
  • Whole Time Director.
  • Chief Financial Officer.

Is coo a KMP?

COO is not considered as a KMP but in future, COO can be considered as a KMP if it prescribes. As the fifth point give the competent authority or government official to consider any officer as a part of KMP as may be considered appropriate at the time of assessment.

Can MD and CFO be the same person?

Though there is not restriction directly, section 203 mandates appointment of MD and CFO as two separate positions. If the company fall under the class of companies required to have KMP, then MD can not be CFO.

Is CFO A KMP?

The CFO need not be a director of the company. However he has been recognised as a KMP under Section 203 and his designation is equated with other managerial personnel such as the managing director, the manager or in their absence, the whole time director.

Are treasurer and CFO the same?

A treasurer is responsible for managing financial risk for the company across credit, currency, interest rates and operations. In business, a CFO generally oversees the performance of a treasurer. The CFO is the highest financial officer in a company.

Is the CFO on the board?

In some jurisdictions as part of a unitary board structure, the CFO is a director of a company with statutory duties. However, where the CFO is not a board member, he or she should operate at the highest level of senior management. This is a critical part of better business and management.

Is a CEO a manager?

As a manager, the CEO presides over the organization’s day-to-day operations. The CEO is the person who is ultimately accountable for a company’s business decisions, including those in operations, marketing, business development, finance, human resources, etc.

What is higher than a manager?

A director is a manager of managers. In a healthy organization, employees will typically require closer supervision than managers, giving directors more time and space to work on high-level tasks. These types of personnel-based skills can often be vital to a manager’s success but not necessarily required of a director.