Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Remuneration Committee

2691 views 1 replies

Mahendra Kumar

Finance Accounts & Taxation

45 Points Posted on 20 November 2007

I urgently need to know about applicability/requirement of constitution of Remuneration Committee for an Unlisted Indian Company.

Our company's closing data as as follows:

paid up capital 74001320.00,

Right Issue 41341320.00,

Bonus Issue 22500000.00 as on 31.03.2007.

Should we constitute remuneration committee in this scenario, as per companies act? If yes, then please mention reference link in answer.

Replies (1)

S.Srinivasaraghavan

Chief Financial Officer and Co

11318 Points Posted on 20 December 2007

The question of remuneration committee arises when remuneration is fixed for managerial personnel in the case of inadequacy of profits, but within the limits of Schedule XIII (Section II of Part II) of the companies Act 1956. You have to therefore see the adequacy of profits to provide for the remuneration applicable to the category of effective capital