Query regarding increase of remuneration of MD

Yes the company can enhance the remuneration in EGM.

- As per my knowledge there is no need to file form 23 for increase in remuneration of MD/WTD

- Form 25A is required to be filed for increase in remuneration of MD.

Dear Friend

If you are increasing the remuneration of MD as per schedule XIII of the Companies Act, 1956 then as per PartIII of the said Schedule says that such resolution should be passed my member as special resolution.

Please check your EGM resolution, whether it is passed as special resolution or not, if passed then it is necessary to file Form-23 with ROC within 30 days from passing of resolution.

Regards

Hi

Section 311 requires approval of CG for the:

1.   Appointment of MD

2.   Appointment of WTD

3.   Re-appointment of MD/WTD

4.   Increase in remuneration of MD/WTD

i.e remuneration which is inexcess of the remuneration which his predecessor in office was receiving earlier.

Similarly, if the same person is re-appointed, but the term of re-appointment purport to increase his/her remuneration the same will require CG approval unless the increase is in accordance with conditions laid down in Part II of Schedule XIII.

For this purpose Form 25A will be filed with ROC.