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Remuneration
What are the consequences if a company pays more remuneration than allowed
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Director shall refund such sums to the company and he shall be punishable with fine which shall not be less than 1 lakh rupees but which may extend to 5 lakh rupees.
The limit of maximum Managerial Remuneration is prescribed in Section 197 of Companies Act, 2013. The person, who contravenes the provisions levied under Section 197 of the Act, shall be punishable with the with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.
Further, sub section 9 to Section 197 prescribes that where any directors remuneration in excess of limit prescribed under this section (without prior sanction of Central Government), the director shall refund the excessive sum to the company.
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