Question

A whole-time key managerial personnel shall not hold office in more than ________ company except inits ______ company at the same time.

• A. two; private
• B. one; subsidiary
• C. one; private
• D. two; government

Answer 1

Answer: (B)

one; subsidiary

Sub-clause 3 of Section 203 of the Companies Act, 2013, says that a whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time. However, a key managerial personnel can be director of any company with the permission of the Board of Directors.