23 March 2012
(a) Can a company re-appoint its Managing Director with effect from 1st April 2012 on a higher scale and prospectively obtain the approval of the shareholders in a general meeting to be held during July 2012.
(b) Can a company pay revised scale of basic pay to its Managing Director with effect from 1st April 2012 and prospectively obtain the approval of the shareholders in a general meeting to be held during July 2012. In both the above cases, the Company has adequate profits.
(1) Yes you can re-appointment him prospectively and give remuneration accordingly.
You pass general meeting resolution in july for payment of remuneration retrospectively.
(2) Before shareholders approval you can not do so. In July 2012 meeting you pass resolution for payment of new scale (remuneration) with effect from 1st April 2012. But you will not paid such new resolution till shareholders approval.
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