Page 46 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) 23062 COPY.indd

BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
th
nd
in the primary or upper layer. The top layer the most significant roles, responsibilities and
will ideally remain empty; however, the RBI functionalities. They are the primary point
may move NBFCs to the Top Layer from the of contact in between the Company and its
upper layer if it considers the NBFCs pose a Stakeholders and also they were responsible
substantial Systemic Risk. for the strategies formulation and its
Implementation. The Companies Act mandates
Key Managerial Personnel: certain classes of Companies to include such
Key Managerial Personnel (KMP) are the Personnel in its Ranks.
employees of a company who are vested with

All listed Companies and all other Public Company which

are having a Paid-up share Capital of 10 Crore Rupees
or even more will have Whole-Time Key Managerial
Personnel. Every Private Company which has a Paid-up
Share Capital of Ten Crore Rupees or more shall have a

Whole-Time Company Secretary as per Section 203 of
Companies Act, 2013.

Key Management Personnel has been assigned have complete right to be heard in the
with a massive responsibility which is of being meetings of the ‘Audit Committee’
liable for any type of non-compliance with the while considering the Auditor’s Report.
provisions of the Companies Act, 2013. The However, they do not have the right to
management function of implementing vital vote.
or major decisions will always fall under the
 As per the Section 189(2), Key
Key Management Personnel responsibilities.
The company’s future is always based on Management Personnel must disclose
the effectiveness or efficiency of its Key to the company, within 30 days of
Appointment, relating to their interest
Management Personnel and the consequences
of KMP’s errors will show a negative impact or concern in the other associations,
which are essential to be included in the
on the company. Some of their main Roles and
Responsibilities are: register.
NBFCs - Key Managerial Personnel:
 According to the Section 170 of the Act,
the details of Securities which is held To address issues arising out of Excessive Risk-
by Key Management Personnel in the taking caused by misaligned compensation
packages, NBFCs are required to put in place
Company or its subsidiary, holding, a
subsidiary of the company or associated a ‘Board Approved Compensation Policy’. The
Policy shall at the minimum include:
companies should be disclosed and
recorded in the Registrar of the Books. a) The Constitution of a Remuneration
Committee.
 Also Key Management Personnel will

The Institute Of Cost Accountants Of India

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