Appointment of CS of a company
Gourab Gupta (12 Points)
09 May 2018
Can an CFO be appointed as the CS of the same company?
15 Replies
Gourab Gupta
(12 Points)
Replied 09 May 2018
sir can you help me in this with the respective section
CS M Pota
(Company Secreatary)
(3186 Points)
Replied 10 May 2018
Yes, the same person can be appointed as CFO and Comapny Secretary of the same Comapny.
Jatin Bajaj
(CS)
(2930 Points)
Replied 10 May 2018
No, same person cannot be appointed as the Company Secretary and CFO of the Company. If it is the private Company where provisions of Section 203 is not applicable, but having the paid up capital of more than 5 crore, then person shall be designated as Company Secretary in Ministry of Corporate affairs but internally the same person can be designated as CFO. But practically as per section 203, read with Rule 8 of Companies (Appointment and Remuneration of Managerial personnel Rules) 2014, all lsited Companies and public limited Companies having paid up share capital of more than 10 crore shall have the Whole time KMP Which includes CFO and Company Secretary and practically same person cannot be appointed as CFO and Company Secretary.
ACS Parul Rawat
(Entrepreneur | Corporate Law Advisor | Lawyer in Making | AIR-8)
(218 Points)
Replied 10 May 2018
As per Section 203 read with Rule 8 of Companies (Appointment and Remuneration of Managerial Personnel Rules) 2014:-
A Company other than:
1. A Listed Co.
2. A Public Co. having paid up Capital of Rs. 10 Cr or more
3. Any other Company having paid up Capital of Rs. 5 Cr or more
may appoint CFO as CS of the Company.
CS M Pota
(Company Secreatary)
(3186 Points)
Replied 10 May 2018
Is there any restriction under the Companies Act.2013 with Rules stating that the same person can not be appointed as Comapy secretary and CFO? if yes please provide.
ACS Parul Rawat
(Entrepreneur | Corporate Law Advisor | Lawyer in Making | AIR-8)
(218 Points)
Replied 10 May 2018
There is no explicit restriction mentioned under Companies Act, 2013. As far as the Company is the one which does not fall under the above mentioned criteria it may appoint same person as CS and CFO of the same Company. But if the Company is the one as mentioned above then giving effect to the words " WHOLE TIME" it must appoint two different persons as CS and CFO of the Company.
CS M Pota
(Company Secreatary)
(3186 Points)
Replied 10 May 2018
Dear Mam,
If there no clear restriction then can be appointed.
ACS Parul Rawat
(Entrepreneur | Corporate Law Advisor | Lawyer in Making | AIR-8)
(218 Points)
Replied 10 May 2018
Yes, only in Companies having paid-up capital less than 5 Cr.
CS M Pota
(Company Secreatary)
(3186 Points)
Replied 10 May 2018
No, for all companies without any capital restrictions
Aditya Shah
(student )
(47 Points)
Replied 13 May 2018
Even a listed company can appoint CS and CFO as the same person... Check companies like HUL and Asian Paints ... I know logically it is not possible as the section specifically mention whole time KMP but there is also no restriction relating to this given in the act
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