Question "I have doubt on Managerial remuneration.. As per Section 387 Remuneration to manager cannot exceed in the aggregate 5 percent of net profit.But the Maximum limits for companies having profits 11,5,10,3,1 percent respectively..So tell me what percentage i should prescribed in my EXAMS.And when 5 percent is used while calculate Managerial remuneration..Tell me What is correct percent of this..."
Answer is as per Sec 387 is deals with remuneration of manager. Remuneration to manager cannot exceed in the aggregate 5% of net profits. However, a manager is included within the scope of the term 'Managerial person' Managerial person includes Manager, MD & WTD. so that 5% is deals only with Manager.
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