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Remuneration of director

Ashish Sharma (Service) (1028 Points)

23 July 2013

Dear Members,

What should be the minimum remuneration to be paid to the Executive Directors of the Company, if Company has made huge loss during the financial year…As we know, Schedule XIII is only way to determine/finalize the minimum remuneration for Executive Director at the time of inadequate profit/loss.
But the main issue is …conditions given under schedule XIII is not able to fulfill Due to default in remuneration Committee, default in repayment of Debt.

Now please help me out from the above situation and suggest me what should be the minimum remuneratin for the Executive Directors.

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P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 23 July 2013

In case yours is a public company and you are not able to meet Schedule-XIII conditions, you will have to take CG approval for payment of remuneration. You should be in a position to justify the remuneration keeping in view industry practice, financial condition of the company etc. You can also refer PPT on managerial remuneration posted by me yesterday in Files Section of this forum for details.

Thanks

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