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![Section 203 of the Companies Act 2013 in India pertains to the appointment of Key Managerial Personnel (KMP) in certain classes of companies. Key Managerial Personnel are individuals who hold top managerial positions and have significant roles in the management and decision-making of a company. The section outlines the types of companies that are required to appoint KMPs and the roles that fall under this category.
Key points of Section 203 of the Companies Act 2013:
Applicable Companies: The section applies to the following categories of companies:
Every listed company.
Every public company having a paid-up share capital of ten crore rupees or more.
Every public company having a turnover of one hundred crore rupees or more.
Every public company, which has, in aggregate, outstanding loans, debentures, and deposits, exceeding fifty crore rupees.
Designated Roles: The section designates specific roles as Key Managerial Personnel, which include:
Managing Director (MD) or Chief Executive Officer (CEO).
Manager.
Chief Financial Officer (CFO).
Company Secretary (CS).
Such other officer as may be prescribed.
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