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Can one person hold cfo & cs in a company

N V K Rao (Service) (24 Points)

04 May 2014

Dear All,

Kinldy suggest whether a person can hold 2 KMP positions like CFO & CS at the same time as per New Companies Act 2013.

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2 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 04 May 2014

Section 203(1) requires appointment of following KMPs:

i) MD or CEO or Manager or WTD;

ii) CS and

iii) CFO.

Intention of law seems to be that there should be at least one person from each of above 3 categories. DIR.12 also does not accept selection of multiple positions for same individual in single form. One will have to try to file two different forms - one as CS and one as CFO.

I am holding the view that same person cannot hold these two positions. However MCA clarification on this is expected.

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abhay kumar (Corporate & Legal Professional) (23 Points)
Replied 17 August 2018

Dear Sir,

DIR-12 is accepting for selection of multiple positions for same individual in single form. Many Companies doing this type of Practics e.g. Asian Paints Limited a big listed company. But there no any clarification from MCA/SEBI or stock exchanges in this regard. There is need to tack action by ICAI/ICSI in this regard.