Dear All
Pl guide me....I hav a query....
In case of inadequacy of profits....managerial remuneration is to be given on the basis of effective capital as on the last day of financial year preceding the year in which appointment of director is made.
Does it mean in that case if today the co is facing inadequacy of profits and the appointment is made ( say3 years ago) the effective capital three years ago will be taken?
| Originally posted by :Himani | ||
| " | YA sure the effective capital of 3 years ago will be taken as we are going to file the form 32 with retrospective effect where the date of board meetings etc will also be of back date. so the capital effectiveness of the 3 years ago will be lokind ahead to determine the managerial remuneration | " |
Agree with Mohit.
CAclubindia
