Can Public profit making company having 4 directors increase its managerial remuneration beyond statutory limit u/s198 i.e. above 11%of net profit? & What are the procedure and resolutions required?
Please take note that plain reading of the section 198 sub section 1 of the Companies Act 1956 provides overall maximum managerial remuneration i.e.11% of the net profit computed according to section 349-350 of the Act.
So in your case a company can not give remuneration beyond 11% of the net profit.
Even provisions of section 309 (1) are subject to provisions of section 198.
As far as Approval of Central Govt is Concerned they are for MD/WTD Which also subject to overall limit up to 11%.
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