{"id":4095,"date":"2017-09-23T14:55:30","date_gmt":"2017-09-23T09:25:30","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=4095"},"modified":"2020-11-30T14:08:29","modified_gmt":"2020-11-30T08:38:29","slug":"appointment-remuneration-managerial-personnel-rule-2016","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/appointment-remuneration-managerial-personnel-rule-2016\/","title":{"rendered":"Appointment Remuneration Managerial Personnel Rule 2016"},"content":{"rendered":"

The Companies Act, 2013<\/strong>[1]<\/a><\/sup> has used term key management personnel (KMP) to define executive management. The KMP (key management personnel) is the point of the first contact between the company & its stakeholders.<\/p>\n\n\n\n

The Companies Act, 2013 .r.w. Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 deals with the legal & procedural aspects of appointment of Key Managerial Personnel (KMP) consisting of Managing Director, Whole-time Director or Manager, managerial remuneration, secretarial audit, etc<\/p>\n\n\n\n

Key Managerial Personnel<\/h3>\n\n\n\n

The Companies Act, 2013 for the first time acknowledged the concept of Key Managerial Personnel (KMP). To say “key managerial personnel simply means &incudes—<\/p>\n\n\n\n

  1. The Chief Executive Officer (CEO) or the managing director (MD) or the manager;<\/li>
  2. The company secretary (CS);<\/li>
  3. The whole-time director (WTD);<\/li>
  4. The Chief Financial Officer (CFO); and<\/li>
  5. Such other officer as may be prescribed.<\/li><\/ol>\n\n\n\n

    Appointment of Key Managerial Personnel<\/h2>\n\n\n\n

    As per the Companies Act, 2013 makes it compulsory to the appointment the Key Managerial Personnel (KMP) & makes it compulsory for all the listed company & every other public company having a paid-up share capital of Rs.1000,00,000 or more, to appoint the following (WT)whole-time key managerial personnel:<\/p>\n\n\n\n

    1. Managing director, or Chief Executive Officer or manager and in their absence, a whole-time director;<\/li>
    2. Company Secretary; &<\/li>
    3. Chief Financial Officer:<\/li><\/ol>\n\n\n\n

      Every single whole-time key managerial personnel (KMP) of the company shall be appointed by means of the resolution of Board containing the terms & conditions of appointment comprising with the remuneration.<\/p>\n\n\n\n

      \"Nidhi<\/a><\/figure>\n\n\n\n

      An individual shall be appointed or reappointed as the Chairperson of the company, as well as the managing director (MD) or Chief Executive Officer (CEO) of a company at the same time unless articles of such a company provide otherwise; or a company does not carry several businesses. However, the class of companies that are engaged in numerous businesses & which have appointed 1 or more than one Chief Executive Officers(CEO) for every such business as may be notified by the Central Government is exempted from the above review.<\/p>\n\n\n\n

      The whole-time key managerial personnel could not hold office in more than 1 company excluding in its subsidiary company at the same time. Though, he can hold such other directorship with the prior permission of the Board.<\/p>\n\n\n\n

      The whole-time key managerial personnel (KMP’s) who are holding office in more than one company at the same time, then they will have to within a period of 6 months from such initiation of the office, choose any 1 company, in which he wishes to continue to hold office as a key managerial personnel.<\/p>\n\n\n\n

      A company or entity may appoint or employ any person as its managing director (MD), in case he is already managing director or manager of one, & of not more than one, other company & such appointment or employment is made or be approved by the resolution passed at the meeting of the Board with consent of all directors present at meeting & of which meeting, & of the resolution to be passed thereat, specific notice has to be given to all the directors who are in India.<\/p>\n\n\n\n

      NOTE:<\/strong> In case the office of any whole-time key managerial personnel is vacated, such a vacancy shall be filled-up by Board at a meeting of the Board within the period of 6 months from the date of such vacancy arises.<\/div>\n\n\n\n

      For more information please visit my website Enterslice.com<\/a> or send us an email at info@enterslice.com<\/a>. You can also call our customer support at +91 9069142028.<\/p>\n\n\n\n

      Also, Read:<\/b> Types of Board of Directors As Per The Companies Act 2013<\/a><\/mark>.<\/p>\n","protected":false},"excerpt":{"rendered":"

      The Companies Act, 2013[1] has used term key management personnel (KMP) to define executive management. The KMP (key management personnel) is the point of the first contact between the company & its stakeholders. The Companies Act, 2013 .r.w. Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 deals with the legal & procedural aspects of […]<\/p>\n","protected":false},"author":4,"featured_media":4097,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1383],"tags":[870,872,873,871],"acf":{"service_id":"220"},"yoast_head":"\nAppointment Remuneration Managerial Personnel Rule 2016: Enterslice<\/title>\n<meta name=\"description\" content=\"The Companies Act, 2013 .r.w. Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 deals with the legal & procedural aspects\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/appointment-remuneration-managerial-personnel-rule-2016\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Appointment Remuneration Managerial Personnel Rule 2016: Enterslice\" \/>\n<meta property=\"og:description\" content=\"The Companies Act, 2013 .r.w. Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 deals with the legal & procedural aspects\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/appointment-remuneration-managerial-personnel-rule-2016\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2017-09-23T09:25:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-11-30T08:38:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2017\/09\/Checklist-of-Documents.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":535,"readingTime":2,"nextPost":{"id":4105,"slug":"fdi-in-private-limited-company"},"prevPost":{"id":4099,"slug":"difference-dormant-company-defunct-company"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2017\/09\/Checklist-of-Documents.jpeg","postTerms":"Change in Business","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/4095"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=4095"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/4095\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/4097"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=4095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=4095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=4095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}