Remuneration committe

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YOGESH GUPTA (Querist)

21 January 2010 whether it is mandatory to have a Remuneration committee as per Schedule XIII of companies act for a limited company having paid up share capital of Rs. 5 crore and above.

Please expalain in two situation:

a) in case of not and inadequate profit

b) in case of sufficient profit

Ankur Garg

Ankur Garg (Expert)

21 January 2010 Hi,

If you want to give managerial remuneration to your managerial personnel in case of inadequate profits then constitution of remuneration committee is mandatory.

However in case of sufficient profits you do not have to follow section II of sch XIII and no need to constitute remuneration committee.

Regards

YOGESH GUPTA

YOGESH GUPTA (Querist)

21 January 2010 dear Ankur

Also let me know that status of our company has been changed from private ltd company to limited company in the month of november09.

How and for what period we calculate the profit under provisions for giving remuneration to Managing director.

Ankur Garg

Ankur Garg (Expert)

21 January 2010 In your case profit as per your last audited Balance sheet would be the base for calculating remuneration.

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