Change in Management

Change management is a systematic approach to dealing with the transition or transformation of an organization's goals, processes or technologies. The purpose of change management is to implement strategies for effecting change, controlling change and helping people to adapt to change. Such strategies include having a structured procedure for requesting a change, as well as mechanisms for responding to requests and following them up. Management Group means the Key Managerial person.

Key Managerial Person means the group consisting of the Whole Time Directors, Chief Executive Officer or Managing Director, Manager, Chief Financial Officer and Company Secretary of the Company.

According to section 203(1) read with Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the following companies are mandated to appoint a Whole-time KMP:

Every Listed Company
Public Companies having paid-up share capital of 10 Crore rupees or more.
Companies having paid-up share capital of 10 Crore rupees or more are mandated to appoint a Company Secretary.

Management Group are generally appointed as per the applicable provisions of the Companies Act 2013, by the shareholders of the company to ensure that the day to day operations of the company are executed in an efficient manner. They have a fiduciary duty to the company and its shareholders, which means to say that they are responsible for conducting the affairs of the company in a way that ensures success and profitability and thus enhancing the image of the company and its reputation.

The change in the Management Group of a company is possible at any time as and when needed. The change can be either voluntarily or through demand. The demand arises in case there is a requirement of an expert in the board or due to resignation or death of aPerson of Management Group.