08 August 2014
Can a person who is holding the office of Non Executive Director of a Company, be appointed as the Chief Financial Officer in pursuance of the provisions of Section 203 of the Companies Act, 2013?
Can a Whole time Director of the Company also hold the post of CFO/CS?
Query 1: Yes, a Non Exec. Director can be appointed as CFO pursuance to Section 203 (3) however the Said CFO is entitled to the disclosure (Within 30 days of appointment)in accordance with Section 189 (2) read with Section 184 (1) + Rule 9.
Query 2: You need to have the minimum KMP as referred in Sec. 203 and the rules. We cannot club multiple roles with a KMP. It uses the word MD/CEO/WTD, CS and CFO. Alternatively, if your WTD is discharging the role of CFO as well, you may appoint another WTD/CEO, etc. to fulfil those requirements, if it suits your need. Even the ROC forms are not accepting the same person at two designations.
A WTD cannot be a CFO. He can be either WTD or CFO.
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