clarification of sec 197

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i m getting problem in sec 197(4)

Remuneration payable to the director of a company including the any Managing Director whole time director or a manager cell be determined in accordance with and subject to the provision of the section either by the articles of a company or by the resolution of a company resolution passed by the company in the General Meeting and remuneration payable to a directory aforsyed for
( shall be inclusive of the remuneration payable to him for the service rendered by him in any other capacity except)
(a) the service rendered are up of the professional nature and in the opinion of the nomination and
( b) remuneration committee if company is a covered under the sub section 1 of the section 178 of the board of directors in another case the directed possess the requisite qualification for the practice of the profession



isme under bracket wala line plz explain
Replies (1)
That means if a director provides service which is of his professional knowledge and amount given for that will not be termed in remuneration
For ex: ABC Hospitals ltd is a company in which Dr Z is director and by profession he is a doctor. He did an heart operation and received 1,00,000 as his fees, this will not be counted in the definition of remuneration as per Section 197, because it is professional service imparted by his experience and knowledge by the Director(Dr Z).

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