Definition
Key Managerial Personnel (KMP)
KMP are the senior officers — such as the MD/CEO, CFO and company secretary — who hold statutory responsibility for managing a company.
Under the Companies Act, key managerial personnel include the managing director or CEO, the whole-time directors, the chief financial officer and the company secretary. Certain companies must mandatorily appoint specified KMP, who carry defined legal duties and liabilities.
KMP are central to governance and disclosure: their appointments, resignations and remuneration are material events, and they are 'designated persons' under insider-trading rules. The nomination and remuneration committee oversees their selection and pay.
Related terms
- Board of DirectorsThe board of directors is the group elected by shareholders to oversee a company's management and set its strategic direction.
- Nomination and Remuneration CommitteeThe NRC is a board committee that decides on board appointments and the pay of directors and senior management.
- Material DisclosureMaterial disclosure is a listed company's obligation to promptly inform the stock exchanges of events that could affect its share price.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.