Which of the following statements is true regarding the appointment of key managerial personnel (KMP) under the Companies Act 2013? A. KMP can be appointed without the approval of the board of directors B. KMP appointments must be disclosed to the Registrar of Companies (ROC) C. KMP appointments do not require any formal documentation D. KMP can be appointed indefinitely without any review
Question
Which of the following statements is true regarding the appointment of key managerial personnel (KMP) under the Companies Act 2013? A. KMP can be appointed without the approval of the board of directors B. KMP appointments must be disclosed to the Registrar of Companies (ROC) C. KMP appointments do not require any formal documentation D. KMP can be appointed indefinitely without any review
Solution
The true statement regarding the appointment of key managerial personnel (KMP) under the Companies Act 2013 is B. KMP appointments must be disclosed to the Registrar of Companies (ROC).
Here's why:
A. KMP cannot be appointed without the approval of the board of directors. The board plays a crucial role in the appointment process.
B. This is true. As per the Companies Act 2013, all appointments of KMP must be disclosed to the Registrar of Companies (ROC).
C. This is not true. The appointment of KMP requires formal documentation. This is necessary for legal and record-keeping purposes.
D. This is not true. The tenure of KMP is not indefinite and is subject to review and reappointment.
Similar Questions
What is the procedure for the appointment of key managerial personnel (KMP) under the Companies Act 2013? A. Appointment through shareholder voting B. Appointment by the board of directors C. Appointment through public advertisement D. Appointment by the regulatory authority
What are the roles and responsibilities of key managerial personnel (KMP) as per the Companies Act 2013? A. Providing technical support to the board of directors B. Representing the company in legal matters C. Ensuring compliance with statutory requirements D. Shareholders with substantial ownership in the company
Which of the following is NOT a key managerial personnel (KMP) position as per the Companies Act 2013? A. Chief Financial Officer (CFO) B. Chief Operating Officer (COO) C. Head of Human Resources D. Head of Marketing
Under the Companies Act 2013, who has the authority to determine the remuneration of key managerial personnel (KMP)? A. The Chief Executive Officer (CEO) B. The board of directors C. Shareholders D. The government regulatory body
What is the maximum term of office for key managerial personnel (KMP) under the Companies Act 2013? A. One year B. Three years C. Five years D. There is no maximum term limit
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