08 October 2010
A private company has converted into a public company. The Company is a loss making company and Prior to conversion it was paying remuneration to Managing Director in excess of limits specified u/s 198+Sch XIII. My query is, whether it can pay same remuneration after conversion without obtaining Central Government approval.
05 November 2010
No, after conversion the remuneraion has to be paid in Limits of Schedule XIII. Payment of excess remuneration woul definately require Central Government Approvl
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