Managerial person of a company to be Director for another company
Can a Key Managerial Personnel (KMP) of one company be the director of another company?
Key Managerial Personnel (KMP) has been defined under Section 2(51) of Companies Act, 2013 which says that; key managerial personnel means
As per Section 203(3) a whole-time Key Managerial Personnel shall not hold office in more than one company. The Section further says that that a KMP cannot be dis-entitled from being a director of any company and needs to take permission from the Board to be a Director in another Company.
The KMP will have to choose one company in which he wishes to continue as a KMP within a period of six months. After the expiry of six months he/she can continue as the KMP of only one Company and can continue being a Director in the other companies.
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