Managerial remuneration_URGENT

Surbhi Jain (Service) (68 Points)

01 September 2008  

A public company has paid to its MD, remuneration in excess of what is provided in schedule XIII. The statutory auditor has issued a qualified report on this point. The company cannot take back the amount given to the MD. The person is no longer an MD of the company.

What would be the consequence of the aforesaid violation in terms of fine, etc. from company's and directors perspective? What would be the way forward - getting approval from Government regarding waiver, etc.? Will compunding of offence help in this situation?