Key Managerial Personnel
The Chapter XIII Rules regarding Managerial Personnel and their Remuneration has been released by Central Government yesterday. As per this Rule 8 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014, every listed company and every other public company having a paid up share capital of Rs.10 crores or more shall have whole-time key managerial personnel.
Key Managerial Personnel as per Section 203 of the Companies Act, 2013 comprises of
1) managing director or chief executive office or manager or in their absence, a whole time director,
2) company secretary, and
3) chief financial officer.
Private companies have been removed completely from the ambit of appointment of KMP.
Secretarial Audit – Rule 9
Every listed company AND
Every other public company having paid up share capital of Rs.50 crores or more OR turnover of Rs.250 crores or more
shall be required to annex along with its Board Report a Secretarial Audit Report duly given by a Company Secretary in Practice.
Here also private companies have been exempted from the ambit of Secretarial Audit Report.