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    KMP of Holding Company

    Posted By : CS Shiriti / Published on : 16-Jun-2022 07:35 AM / View : 403 / Comment : 2

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    KMP of holding company be appointed in only one subsidiary or in all subsidiaries of holding company at the same time please clear.
    Read more on : company holding

    • Dear Madam,

      Greetings!

      Section 203(3) of the Act provides that whole-time Key Managerial Personnel shall not hold office in more than one company except in its subsidiary company at the same time. This throws the question can company appoint one whole-time KMP for more than once subsidiary. Since there is no any clarification from Ministry of Corporate Affairs (MCA) so some experts formed an opinion that as per section 13 of the General Clauses Act, 1897 ‘singular’ shall include the ‘plural’, unless there is anything repugnant in the subject or the context. Thus, whole-time KMP may hold office in more than one subsidiary company.

      Hope it helps

      17-06-2022 / 05:02:54 AM
      Reply
    • Yes, Right Sohil 

      The appointment of Key Managerial Personnel (KMP) of a holding company in its subsidiaries depends on various factors such as the structure of the group, the business needs of each subsidiary, and applicable laws and regulations.

      As per the Companies Act, 2013, a KMP of a holding company can be appointed as a KMP in one or more subsidiaries of the holding company, provided that such appointment is made by following the prescribed procedure and with the necessary approvals.

      However, it is important to note that the appointment of KMPs in subsidiaries should be done in a manner that ensures compliance with all relevant laws and regulations, including those related to the appointment of KMPs, related party transactions, and corporate governance.

      Moreover, the appointment of KMPs in subsidiaries should also take into account the specific business needs and requirements of each subsidiary, as well as the overall strategic objectives of the group.

      04-04-2023 / 08:39:50 AM
      Reply
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