TAILIEUCHUNG - Ebook Company law executive: Part 2

(BQ) Part 2 book "Company law executive" has contents: Application of company law to different sectors, application of company law to different sectors, compounding of offences, striking off name of companies, winding up of companies –an overview,.and other contents. | Lesson 17 Appointment and Remuneration of Key Management Personnel LESSON OUTLINE • Key managerial introduction • Compulsory Appointment of KMP • Appointment of KMP by Board • Vacancy of KMP office • Penal provisions • Period of appointment of KMP • Disqualification of appointment • Conditions for appointment • Company secretary defined as KMP • Powers & duties of CS • Role of company secretary • LEARNING OBJECTIVES personnel(KMP)- Functions of a company secretary The Companies Act 2013 has introduced a new concept for appointment of the Key Managerial Personnel on top level of the organizational structure. In the new Act the position of company secretary has been enhanced multifold, from record keeper to key managerial personnel. A present day company secretary is expected to do statutory, administrative, managerial and strategic functions. After reading this lesson, you will be able to understand the legal and procedural aspects as regards appointment, conditions for appointment, how to fill the vacancies in office of KMP, CS as a Key Managerial personnel, powers and duties of KMP, Penal Provisions for the Contravention of provisions applicable ,.etc, from the Act. “Effective leadership is putting first things first. Effective management is discipline, carrying it out." – Stephen Covey 410 EP-CL 1. INTRODUCTION The executive management of a company is responsible for the day to day management of a company. The companies Act, 2013 has used the term key management personnel to define the executive management. The key management personnel are the point of first contact between the company and its stakeholders. While the Board of Directors are responsible for providing the oversight, it is the key management personnel who are responsible for not just laying down the strategies as well as its implementation. Chapter XIII of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 deal

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