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Managerial Remuneration

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This query is : Resolved

ketan (Querist)

23 June 2010 Our Company is A public limited company and have got less profit and we want to give higher remuneration to our director also we does not want to apply Schedule XII.
MY Contention is that as Our Director is a CA as Well as CFA. whether any payment made to him can be covered under the definition of Managerial remuneration as it is specifically given U/s 309(1) that if a director possess technical qualification and holds any office or place of profit that any payment made to him will not covered under the Managerial Remuneration and will not be hit the percentage limits of 11 %

Ankur Garg

Ankur Garg (Expert)

23 June 2010 Hi Ketan,

Your observation is correct about the provision of section 309(1) i.e. if a director possesses technical qualification than any payment made to him will not covered under the Managerial Remuneration and will not be hit the percentage limits of 11 %.

But the same is subject to the approval of Central Govt. and you have to satisfy CG about that qualification through filing an application.

Regards

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