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Remuneration to director in excess of schedule xiii limits

Others 1562 views 8 replies
a public limited company paid managerial remuneration to a whole time director more than rs.400000 per month during fy 2011-12. But the payment is less than 10 percent( including one more directors salary) of the profit. Is central govt approval required for this...? Pls tell what are the comlience requirmen...
Replies (8)

no central govt approval required, if its within 10% for 2 directors in total. check whether form 25C is filed at the time of appointment. no other compliance required.

regards,

sangram

9422622828.

no central govt approval required, if its within 10% for 2 directors in total. check whether form 25C is filed at the time of appointment. no other compliance required.

regards,

sangram

9422622828.

no central govt approval required, if its within 10% for 2 directors in total. check whether form 25C is filed at the time of appointment. no other compliance required.

regards,

sangram

9422622828.

thank you sangram.

 

is that required to get that approved in agm with special resolution... if that is not apporved by members for this period...?

 

 

The query is regarding WTD.

 

CG approval is not required in your case if that other director drawing salary is managerial personnel i.e. MD or WTD. See proviso to section 309(3).

If the other director is ordinary director that you can not take the benefit of 10% limit for 2 directors together.

 

Regards

approval by shareholders special resolution is required. if they dont approve then all the salary paid to WTD shall be reimbursed by him to the company.

Originally posted by : sangram ghatge

approval by shareholders special resolution is required. if they dont approve then all the salary paid to WTD shall be reimbursed by him to the company.


Kindly let me know under which provision of company law, shareholders special resolution is required keeping in view the present case of Mr. Uday G.

 

Thanks

Special Resolution is required as per part II of schedule XIII tables. However, in this case section 1 will be applicable.

Wherein it is specified that subject to the provisions of section 198 and 309, a company having profits in a financial year may pay any remuneration, by way of salary, dearness allowance, perquisites, commission and other allowances, which shall not exceed five percent of its net profits for one such managerial person, and if there is more than one such managerial person ten percent for all of them together.


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