CS ISHA SINGHAL (PRACTICING COMPANY SECRETARY) (33 Points)
09 September 2014hii,
can any one please provide me the procedure to increase the director's remuneration as per new companies act 2014. A public company want to increase its MD and WTD salary from 2 Lac to 3.5 Lac. plz provide the resolution format also.
thanks in advance.
prakash
(Company Secretary)
(1352 Points)
Replied 09 September 2014
Dear Isha,
To reply to your query, we should know that whether your company is profit making company and what is effective capital?.
I request you to go through section 196 and 197 of the Companies Act, 2013 and rules made thereunder and Schedule V of the Companies Act, 2013
CS ISHA SINGHAL
(PRACTICING COMPANY SECRETARY)
(33 Points)
Replied 12 September 2014
Dear Prakash ji,
Thankyou sir for your reply..
Yes, our company is profit making but its profit is inadequate to give remuneration of 6 Director @ Rs. 3.5 Lac per month. So the Company cover under Section II of Part II of Schedule V. The effective capital of the Company come into the slab of 5-100 crore.
Sir one more thing i want to knw that i have to file MGT-14 form 2 times or one time if the company convene a board meeting on 1 April 2014 regarding calling EGM for director remuneration one MGT-14 for this and then for EGM. or i have to file only one MGT 14.
Thanks
prakash
(Company Secretary)
(1352 Points)
Replied 12 September 2014
As per Rule 7 (2) of Companies (Appointment and Remuneration of Managerial Perssonel) Rule 2014, companies other than listed companies and subsidiary of listed company may without central goverment approval pay remuneration to its managerial personals in event of no profit or inadequte profits beyond ceiling specified under section II part II of schedule V subject to complying conditions mentioned under that rule.
Only one MGT 14 after approval of remuneration by members in general meeting by way of special resolution.
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