Remuneration to director of public company

Query:

 

In a Public Company (Listed Company), under section 196 of the Compnies Act, 2013 we have appointed Managing Director of the Company by passing a Board resolution subject to the approval of shareholders at the next general meeting.

 

And, now the Company wants to pay remuneration to that Managing Director. But since the appointment has not been approved by the shareholders so can we pass again another Board resolution for the remuneration of Managing Director even though the resolution for his appointment has not been approved by the shareholders. 

 

Regards

Shilpa

 

 

 

Replies (1)

While reading sec 196(4), I understand that the board shall approve the T& C and remuneration at the board meeting at which appointment takes place, which shall be approved in following general meeting.

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