Distinguish Between · Q7
Q.Distinguish between a Director and a Key Managerial Personnel (KMP).
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Start your 14-day free trial to unlock the full solution →| Basis | Director | Key Managerial Personnel (KMP) |
|---|---|---|
| Governing section | Section 2(34) | Section 2(51) |
| Role | Policy-making and oversight as a Board member | Whole-time execution of the Board's decisions |
| Board membership | Always a Board member | May or may not be (CFO/CS usually are not; MD/Whole-time Director are) |
| Employment status | Not necessarily an employee (non-executive/independent directors draw sitting fees only) | Always a whole-time, salaried officer |
| Which companies must have one | Every company (min 1–3 depending on type) | Only listed companies, and public companies with paid-up capital ≥ ₹10 crore [Section 203] |
| Appointing authority | Members in general meeting [Section 152] (or Board, for additional/alternate/nominee/casual-vacancy directors) | Board of Directors, by resolution [Section 203] |
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