Key Managerial Personnel (KMP) refers to persons holding significant positions in the company who are expected to perform their designated roles. They are the first point of contact between the company and its stakeholders and are responsible for the formulation of strategies and its implementation.
Key Managerial Personnel (KMP) in relation to a company, broadly includes:
i) the Chief Executive Officer or the Managing Director or the Manager;
(ii) the Company Secretary;
(iii) the whole-time director;
(iv) the Chief Financial Officer;
Every ‘KMP’, i.e. the CEO, Managing Director, Manager, CS, WTD, CFO, etc. wherever they are appointed, contributes to the achievement of company’s objectives. They are involved in planning, directing, and controlling the functioning of a company at different levels.
The Companies Act mandates certain classes of companies to have KMP as indicated below:
Every listed company and every other public company having a paid-up share capital of ten crore rupees or more shall have the following whole-time key managerial personnel:
(i) Managing Director, or Chief Executive Officer or Manager and in their absence, a whole-time director;
(ii) Company Secretary; and
(iii) Chief Financial Officer:
Summary-The Key Managerial Personnel performs a vital role in their specialised areas of functioning including finance, law, technical expertise, compliance, business promotion, etc.so as to contribute to the company.
Disclaimer-This Article or any references contained therein, are meant for educational purposes only. It shall not be construed as rendering of any advice, in any manner, whatsoever. We reserves, the right to modify, delete the content or rectify any inadvertent errors, at any time.
Very good article about CS profession.
We could appreciate if it elaborate more on the current challenges are facing by profession due to AI etc.and other fellow profession’s etc
Excellent,crystal clear explanation of whether A CS is
1.corporate employee
2.Service provider who works not only as a nation builder but also as a conscience keeper for the Government of India.
3. Whether he is an insider or an outsider to the company.
4. Or just a KMP..
But there are a specialist field of officers who are known as ICLS officers(Indian corporate Law service officers) who are selected after writing the rigorous UPSC examinations.. these officers are appointed by the government of India in respective positions to prepare the bare act or amendments or notices their of which are to be complied with the company secretaries through out India.
5.the point where the other explains that some powers of various stakeholders should be given to the company secretaries is counter-intuitive because various powers will be concentrated with key managerial person will get absolute power over the decisions to be taken regarding the long-term survival of the company itself and as we know absolute power corrupts absolutely.. Hansa company secretary should not be provided at various powers from the stakeholders.
6.a company secretary being proficient in various corporate ,labour ,economic capital ,governance laws & rules and the company secretary act and rules and besides keeping the bottom line of the company in mind he had enough responsibilities and duties to be performed as a key managerial person to the company and I don’t think he must be given some additional powers and responsibilities.
Conclusion: excellent representation of who and what a company secretary is what are his roles ,responsibilities and duties are. An excellent and enlightening article indeed.