Cardiff Services

KMP Appointment

Overview – Key Managerial Personnel (KMP) Appointment

Key Managerial Personnel (KMP) are critical officers appointed by a company to ensure effective governance and management. As per the Companies Act, 2013, certain key roles such as Managing Director, Chief Executive Officer, Chief Financial Officer, Company Secretary, and Whole-Time Directors must be appointed as KMPs.

 

The appointment of KMPs is essential for legal compliance, operational efficiency, and corporate governance. It involves adherence to procedural requirements laid down under the Companies Act and related rules, including approvals by the Board and shareholders, disclosure of their appointment, and maintaining statutory registers.

 

At Cardiff Services, we assist companies in seamless KMP appointment processes, ensuring timely filings, compliance with regulatory mandates, and proper documentation to avoid penalties.

Features – KMP Appointment

  • Defined by Companies Act, 2013
    Appointment governed under Section 203 of the Act.

  • Key Roles Included
    Covers Managing Director (MD), Chief Executive Officer (CEO), Chief Financial Officer (CFO), Company Secretary (CS), and Whole-Time Directors.

  • Mandatory for Certain Companies
    Applicable to listed companies and prescribed classes of companies as per the law.

  • Board Resolution Required
    Appointment must be approved by the Board of Directors through a formal resolution.

  • Shareholder Approval (if applicable)
    In some cases, approval from shareholders is required.

  • Filing with Registrar of Companies (RoC)
    Details of KMP appointment must be filed with RoC within prescribed timelines.

  • Maintenance of Statutory Registers
    Company must update the register of KMPs and maintain records accordingly.

  • Ensures Compliance and Governance
    Strengthens corporate governance and accountability.

  • Time-bound Appointments
    KMP must be appointed within the stipulated time period under the Companies Act.

  • Facilitates Smooth Operations
    Ensures that key leadership roles are legally filled and functional.

Documents Required – KMP Appointment

  • Board Resolution approving the appointment of KMP

  • Consent letter from the proposed KMP (stating willingness to act)

  • Declaration by KMP regarding eligibility and non-disqualification

  • Appointment letter issued to the KMP

  • Identity proof and address proof of the KMP (e.g., PAN card, Aadhaar, Passport)

  • DIN (Director Identification Number) allotment proof (if applicable)

  • Resume/CV of the proposed KMP (optional but recommended)

  • Service agreement or contract (if applicable)

  • Shareholder resolution (if shareholder approval is required)

  • Form DIR-12 (to be filed with Registrar of Companies)

  • Form INC-22 (for change of registered office address, if applicable during appointment)

  • Copies of MoA and AoA (if required for reference)

Procedure – KMP Appointment

  1. Identify the Need for KMP Appointment

    1. Determine the vacant KMP position(s) as per the Companies Act, 2013 requirements.

  2. Search and Selection

    1. Identify and shortlist suitable candidates with relevant qualifications and experience.

  3. Obtain Consent and Declarations

    1. Get written consent from the candidate agreeing to act as KMP.

    2. Obtain declaration of eligibility and non-disqualification under the Companies Act.

  4. Board Meeting and Approval

    1. Convene a Board Meeting to discuss and approve the appointment.

    2. Pass a Board Resolution for the appointment of the selected candidate as KMP.

  5. Shareholders’ Approval (if applicable)

    1. If required by law or company’s Articles of Association, seek shareholder approval through a General Meeting.

  6. Issue Appointment Letter

    1. Issue a formal appointment letter specifying terms and conditions.

  7. Filing with Registrar of Companies (RoC)

    1. File Form DIR-12 with the RoC within 30 days of appointment to notify the appointment of KMP.

  8. Update Statutory Registers

    1. Update the register of Key Managerial Personnel and other related records.

  9. Disclosures and Compliance

    1. Disclose KMP details in Annual Returns and Financial Statements as per regulatory requirements.

  10. Ongoing Monitoring

    1. Ensure compliance with all legal and regulatory obligations related to the KMP.

Frequently Asked Questions

A company name search ensures that your chosen business name is unique, legally compliant, and not already registered with Companies House UK. It helps you avoid legal disputes, trademark issues, and confusion in the Cardiff business market.

If your desired name is already registered, you’ll need to choose a different name or modify it. Using a taken name could result in rejection by Companies House or potential legal issues. Our experts can help you brainstorm alternative names that are compliant and market-ready.

It’s not advisable to use a name that’s too similar to another company, especially within the same industry. Similar names can confuse customers and risk trademark disputes. A company name search helps you identify these risks early.

For a company name search in Cardiff, you may need:

  • Proposed company name

  • Business entity type (Ltd, LLP, Partnership, etc.)

  • Jurisdiction (Cardiff / UK)

  • Owner or shareholder details (if applicable)

  • Business description

A “high probability” result means your proposed company name is likely to be available, but further checks are recommended. This is why our detailed Cardiff Company Name Search Report includes both identical and similar names for clarity.

Certain words are restricted under UK law (e.g., “bank,” “insurance,” “government”). If you want to use them, you’ll need special approval from regulatory bodies. We guide you through this process if your Cardiff business requires such terms