05 June 2013
Is board resolution sufficient for increase in the salary of Managing director within limit specified in schedule Xiii ,if at the time of his appointment members conferred power to Board to increase his remuneration within the limit ? All are requested to do a favor and suggest .ASAP
In case of private limited company, Board resolution will be sufficient to increase remuneration of MD, but in case of public company general meeting resolution is also required as par Part III to Schedule XIII of the Companies Act, 1956.
17 June 2013
Sir I agree with you but if refer section 192 (4) (c) then the board res. for variation in the terms of appointment of MD is required to be registered .after referring section 311 ,schedule X111 part II and III along with section 192 what i have concluded is we can increase its remuneration with Board resolution : ---if it is within the limit --- variation in his terms of appointement(that may be Increase in remuneration) --- terms were approved in the shareholders meeting at the time of his appointment then mere for yearly increase within the limit and within his time limit of appointment ,shareholders approval will not be required only board resolution will suffice subject to its registration through e- form 23 .
CAclubindia
