Designating cfo as kmp

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2015 Hi

Ours is a Private Limited Company. We have a CFO in our company from last 2 years, who was not appointed in Board Meeting?

Are the provisions of KMP is applicable ?

If we now want to designate him as KMP, what are procedures to be followed?

Whether he is liable to sign the financials irrespective of not being appointed as KMP?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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09 September 2015 Appointment of KMP is not mandatory for private companies.

For appointment of KMP, you have to pass Board Resolution, which contain terms and conditions of appointment including remuneration.

As per section 134 of the Companies Act, 2013 the financial statement need to be signed by CFO.It is not relevant whether CFO is designated as KMP or not