when cg permission required ?
how a loss making company can give 30/60 lac remuneration , when a profit making company is limited 11% of profit only.
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logic between section 197 & schedule v limit
Replies (2)
For profit making co any one can done better bcoz of eg :-its brand value,demand
For loss making co, no one dare to take position & lots of experience required to make loss making co to profit making co
Now no CG Permission required- pls check
All the best
Schedule V is invoked only when the company wants / desire to pay more than the limits permitted in the law i.e., 11% of NP i.e., Schedule V is not the sole property of loss making Company, even a profit making companies can take shelter also.
However the Act has considered certain aspects and given a specific provision / limits which enables even a loss making company to pay some considerable amount as remuneration so that it can attract and retain good talents who has the capacity to convert a loss making company into a profit making one.
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