Appointment of Key Managerial Personnel

1. Chief executive officer, manager or managing director;

2. Company Secretary;

3. Whole-time director;

4. Chief financial officer;

5. Such other officers, designated by the Board as KMP but are not more than one level below the directors in whole-time employment;

6. Such other officer as may be prescribed.

It is mandatory for any listed company and any company with a paid up capital of more than or equal to 10 lakhs to appoint a whole time KMP. Further, a company with at least 5 lakhs paid-up capital is required to employ a full-time company secretary(who is also a KMP).

No company shall appoint or re-appoint any person as its managing director, whole-time director or manager for a term exceeding five years at a time: Provided that no re-appointment shall be made earlier than one year before the expiry of his term.

KMP should not hold the office in more than one company the whole time except it is the subsidiary company. Also, KMP might become the director of any company with the approval of the board.

Every whole-time, KMP is appointed through a resolution of the board containing the conditions and terms of appointment, including remuneration.

As per company law, KMP is not required the appointment in the private company so that in case of appointment, or removal of director in the private company, MGT-14 is not filed with Registrar.