KMP Appointment Software for Company Secretaries: MD, CEO, CFO, CS – Section 203 Compliance

Section 203 of the Companies Act, 2013 mandates the appointment of Key Managerial Personnel (KMP)—Managing Director, CEO, CFO, and Company Secretary—for specified companies. KMP appointment software helps Company Secretaries generate board resolutions, appointment letters, and EGM documents compliant with the Act.

Companies Act 2013 Provisions – Section 203

Section 203 requires every listed company and every other public company with paid-up share capital of Rs. 10 crore or more to appoint a Managing Director or CEO, CFO, and Company Secretary. The appointment is made by the Board; in certain cases, shareholder approval is required (e.g., appointment of MD beyond the limits in Schedule V).

• Board resolution for KMP appointment
• EGM/AGM notice and resolution if shareholder approval is needed
• Appointment letter with terms and conditions
• Director consent (DIR-8) and DIR-12 if KMP is also a director
• Form DIR-12 filing within 30 days

Documents Required for KMP Appointment

• Board meeting notice and resolution
• KMP appointment letter (with remuneration, tenure, roles)
• Consent letter from the appointee
• EGM notice and resolution (where shareholder approval is required)
• Explanatory statement (Section 102)
• Form DIR-12 (if KMP is also a director)

Manual vs Automated KMP Document Drafting

Manually drafting KMP appointment documents involves copying templates, updating company names, appointee details, dates, and remuneration terms. Each document must be cross-checked for consistency. Errors in dates or designations can lead to re-filings or client embarrassment.

• Manual: 2–4 hours per KMP appointment; repeated data entry across 4–6 documents
• Automated: 15–30 minutes; single data entry, auto-filled across all documents
• Manual: Appointment letter terms drafted from scratch or old files
• Automated: AI-assisted drafting with role-specific terms (MD, CEO, CFO, CS)

Software Automation Process for KMP Appointment

KMP appointment software follows a clear workflow:

1. Select company – Choose the client from the master database. Company name, CIN, registered office, and existing directors load automatically.
2. Enter KMP details – Fill in appointee name, designation (MD/CEO/CFO/CS), DIN (if director), address, qualification, experience, remuneration, tenure.
3. Enter meeting details – Board meeting date, time, venue; EGM date/time/venue if shareholder approval is needed.
4. Select signing directors – Choose which directors will sign the resolution and appointment letter.
5. Generate documents – Select board notice, board resolution, appointment letter, EGM notice (if applicable). Click Generate.
6. Download and save – Download .docx files, review, save to document library. File DIR-12 if required.

How KMP Appointment Software Automates Drafting

KMP appointment software auto-fills company and appointee details, generates board notices and resolutions, and drafts appointment letters. AI-assisted drafting can tailor terms to the role (MD, CEO, CFO, CS) and company profile. Use with board meeting software and director appointment software for complete workflows. See the full event-based compliance guide for all corporate events.