Draft Agreement for Appointment of CFO


Draft Agreement for Appointment of CFO

THIS AGREEMENT made this …..day of ………, 20__ BETWEEN _____ LIMITED, a Company incorporated under the Companies Act, 2013 and having its registered office at …………….. hereinafter called "the Company" (which expression shall, unless repugnant to the context or meaning thereof, include its successors) of the ONE PART and Shri  ____ S/o Shri ______ residing at ………. (hereinafter called "The Chief Financial Officer") of the OTHER PART:


At the meeting of the Board of Directors of the Company (hereinafter referred as “Board”) held on ______ Shri _____ was appointed as the Key Managerial Personnel of the Company and designated as the Chief Financial Officer (CFO) with effect from __________.

The parties hereto are desirous of entering into an Agreement being these presents to set out the terms and conditions of appointment of CFO as hereinafter contained.

That during the continuance of this Agreement, the CFO shall, except during the periods of his leave as hereinafter provided or when he shall be indisposed by sickness, ill-health or incapacitating accident or when he shall have obtained the prior written consent in that behalf of the Board or as may be otherwise agreed upon between the Company and the CFO, devote his whole time and attention to the business and affairs of the Company and shall utilise his best endeavors in promoting the interests thereof and shall, except as aforesaid, attend his place of employment at all proper times during the usual and customary working hours of the Company.

The CFO shall be responsible for all the financial affairs of the Company, risk management, internal audits, reporting to Board of Directors and liasoning with bankers of the Company and Financial Institutions, SEBI, Stock Exchange and activities relating to the proposed public issue activities and for that purposes he shall exercise such powers and duties as the Board may from time to time determine impose upon him.

The CFO shall undertake such travelling in and outside India as may be necessary in the interest of the Company's business or as may from time to time be required or directed by the Board in connection with or in relation to the business of the Company.

The CFO shall comply with all the policies, rules and regulations of the Company from time to time in force.

As the CFO of the Company, Shri ________ will receive the following remuneration:
That the Company shall provide a Car with driver and telephone and cell to CFO for discharging his duties, which shall not be considered as perquisites for the above said purposes.

That the CFO shall also be entitled for the reimbursement of actual traveling, boarding and lodging expenses and other amenities as may be incurred by him, from time to time, in connection with the Company’s business and any other allowances, benefits and perquisites as are provided to the senior executives of the Company and/or which may become applicable in the future and/or any other allowance, perquisites as the Board may decide from time to time.

That if the Chief Financial Officer shall at any time be prevented by ill-health or accident from performing his duties hereunder, he shall inform the Board and supply it with such details as it may reasonably require and if he shall be unable by reason of ill-health or accident for a period of six months in a period of twelve consecutive calendar months to perform his duties hereunder, the Board shall be entitled to forthwith terminate his employment hereunder.

That if the CFO is found guilty of in attention to, or negligence in the conduct of, the business or of any other act or omission interfering with or inconsistent with his duties as the CFO or any breach of this agreement, the Company may by ninety days' notice in writing to the CFO terminate his employment

Notwithstanding anything contained herein to the contrary, the Board on behalf of the Company shall be entitled to pay to the CFO in lieu of any notice of termination provided under this Agreement, the compensation subject to the prescribed limits.

IN WITNESS WHEREOF the parties hereto have executed these presents the day and year first hereinabove written.

                                                                                Managing Director
Witnesses: -                                                  SIGNATURE OF PARTY OF SECONDPART
1.      -------------------------------
                                                                                 Chief Financial Officer

2       --------------------------------       
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