Companies Act, 1956
Section - 198 - Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits
Managerial remuneration, etc.[Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits.198. (1) The total managerial remuneration payable by a public company or a private company which is a subsidiary of a public company, to its directors and its [***] manager in respect of any financial year shall not exceed eleven per cent of the net profits of that company for that financial year computed in the manner laid down in sections [and ], except that the remuneration of the directors shall not be deducted from the gross profits.[***] (2) The percentage aforesaid shall be exclusive of any fees payable to directors under sub-section (2) of .(3) Within the limits of the maximum remuneration specified in sub-section (1), a company may pay a monthly remuneration to its managing or whole-time director in accordance with the provisions of or to its manager in acco .... To read the full section download the app from Google Play store
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