Key Managerial Personnel: An Analysis Based On The Indian Companies Act And Allied Rules

Tejas Singh, BA LLB (Hons), Bennett University & LLM (Corporate and Commercial Laws), WBNUJS

Edwin Lepcha, BA LLB (Hons), National Law University, Odisha & LLM (Corporate and Commercial Laws), WBNUJS

ABSTRACT

The roles and contributions of key managerial personnel in promoting sound corporate governance have been identified and acknowledged on a global scale. Corporate governance principles have been compromised in certain instances due to inadequate oversight or the greed exhibited by these employees.

Key management personnel possess the ability to either establish or derail an organisation. They are the most influential administrators in the organisation and are in charge of its growth, strategy, and performance.

The inquiry begins with a definition of the term "Key Managerial Personnel" (KMP). The Indian Companies Act of 2013, along with subsequent amendments, provide significant insights regarding the identities of these vital managerial personnel.

"Major managerial employees, with respect to a company, are defined as follows in the Companies Act of 2013:

1. the managing director or

2. the chief executive officer (CEO);

3. the company secretary (CS);

4. the whole-time director (WTD);

5. the chief financial officer (CFO); and

6. any other officer as may be prescribed."
   

This article analyses the substantial duties and obligations of these critical executives, along with the extent to which they aid in the preservation of sound corporate governance within organisations.