Question

A whole time KMP which includes Company Secretary shall not hold office in______________.

• A. More than one company except in its subsidiary company at the same time.
• B. More than two companies and its subsidiary company at the same time.
• C. More than one company except in its associate company at the same time.
• D. More than one company except in related company at the same time.

Answer 1

The correct option is A More than one company except in its subsidiary company at the same time.

Key Managerial Personnel (KMP) are the employees of a company who hold key positions in the company and greater responsibility of overall functioning of the company including the responsibility to protect the interest of the stakeholders.

According to Section 203(3), a whole time KMP shall not hold office in more than one company except in its subsidiary company at the same time.