Definition of Key Managerial Person Under Company Act, 2013
Company Act, 2013 has brought new concept of key managerial persons. It has entrusted a lot of responsibilities, duty on key managerial persons and also has made provisions for heavy penalty for any gross negligence on part of key managerial persons in complying with provisions of Company Act, 2013. Therefore, we must know who is included in key managerial person and who is not included.
Let’s see definition of Key Managerial Person as given in Company Act, 2013
“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
Therefore, company has included Chief Executive Officer, Managing Director, Manager, Company Secretary, Whole-Time Director and Chief Financial Officer in the definition of Key Managerial Persons.
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