Section - 311 - Increase in remuneration of managing director on re-appointment or appointment after Act to require Government sanction
Increase in remuneration of managing director on re-appointment or appointment after Act to require Government sanction.311. In the case of a public company, or a private company which is a subsidiary of a public company, if the terms of any re-appointment or appointment of a managing or whole-time director, made after the commencement of this Act, purport to increase or have the effect of increasing, whether directly or indirectly, the remuneration which the managing or whole-time director or the previous managing or whole-time director, as the case may be, was receiving immediately before such re-appointment or appointment, the re-appointment or appointment [shall not have any effect— (a) in cases where Schedule XIII is applicable, unless such increase is in accordance with the conditions specified in that Schedule ; and (b) in any other case, unless it is approved by the Central Government];and shall become void if, and in so far as, it is disapproved by that Government.
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