Companies (appointment and remuneration of managerial person

Co Act 2013 241 views 3 replies

KAPIL

ARTICLE

31 Points Joined March 2009

Hi,

I want to know applicability of Rule 5(2) of Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 on subsidiary company of Listed company.

I have also attached Rules for reference.

Thanks

Attached File : 160888 20160820155305 companies appointment remuneration of managerial personnel rules 2014.pdf downloaded: 109 times

Replies (3)

Praveen Kr. Tiwary

Practicing Company Secretary

54 Points Joined July 2008

The said provisions of Rule 5(2) of the Companies (Appointment & Remuneration of Managerial Persons) Rules, 2014 (relating to inclusion of Employees details in Board's Report) will apply to all companies including a subsidiary of a listed company.

KAPIL

ARTICLE

31 Points Joined March 2009

Thanks a lot sir for your valuable feedback. As there is some ambiguity in relevant rules, I will be thankful if you can share any judgement/ clarification with reference to these section.

I need some information from a company and company is denaying applicability of Rule 5(2)- it is subsidiary of listed co.

Thanks and Regards

Kapil Maheshwari

Praveen Kr. Tiwary

Practicing Company Secretary

54 Points Joined July 2008

Where is the ambiguity? Rule 5(1) applies only to Listed Companies, as it specifically states "Every Listed Company Secretary shall include in its Report"...

Rule 5(2) applies to every company as it states that "the Board Report shall include a statement about every employee of the Company (i.e. a company defined in the Act and not just a listed company).

Moreover, considering that it is a new Act, you won't find a case law for each matter dealt with under CA 2013.