Managerial remuneration under section 198

As per section 198 and 309 (3), If company has two whole time director then remuneration payable to them together will be maximum Rs. 8617.6 Million (in any proportion/ratio) subject to authorised as per resolution mentioning their terms of appointment and remuneration.

In case you want to pay remuneration higher than the above limit you have to pay it according to PART II of schedule XIII of the Companies Act, 1956.

not agree on the term  "(in any proportion/ratio)",  as each of them is entitled to max. 5%.     

Originally posted by : Neha Jain
	As per section 309 (3) Managerial personnel is entitied to max. 5% if there is one OR 10 % for all of them together. It means it can be in any proportion, not necessarily 5% each.

No way.

As per section 309 (3) Managerial personnel is entitied to max. 5% if there is one "AND" 10 % for all of them together. 

Please refer the proviso to section 309 (3) again it states AND not OR.

Both the conditions are to be satisfied ( ie. max 5% to one and overall max 10% to such WTD/MD.)

for reference read "A Ramaiya".

Hope the issue is clear to you now.

DEAR K,

MY EMAIL ID IS nehajaincs @ gmail.com

Can you pls email me relevant explanation of Ramaiya. This will be so kind of you.

Looking forward for your mail.

Thanks.

Dear sir / madam,

can anyone send me resolution regarding increment of managerilal remuneration.

Regards,

Bablu Kr Jha