Remuneration to managerial personnel

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Anindita Upadhyay

Assistant Company Secretary

24 Points Joined November 2009

MCA: Managerial Remuneration - Clarification on Notification GSR 534(E) dated 14/07/2011 (Notification [F. NO. 14/11/2012-CL-VII], dated 16-8-2012)

Dear All,

Vide Notification No. GSR 534(E) dated July 14, 2011, companies were exempted from obtaining the approval of the Central Government for payment of remuneration exceeding the limits imposed by the Companies Act, 1956 in respect of the managerial persons not having any interest in the capital of the company and not related to the directors or promoters thereof.

Can any one please suggest me whether the above notification is applicable for listed companies only or for listed as well as unlisted companies.

Regards,

Anindita

Replies (3)

Guest

Dear Anindita,

The entire sub-para (C) of Section II of Part II of Schedule XIII to the Companies Act 1956 is applicable only to the listed companies or subsidiaries of listed companies.

Since the said Notification no. GSR 534(E) dated 14/07/2011, is related to amendments in 'sub-para (C) of Section II of Part II of Schedule XIII to the Companies Act 1956', it is only applicable to the listed companies or subsidiaries of listed companies.

Regards,

Veeral Gandhi

Tanveer Md Masood

Indispensable

361 Points Joined July 2012

thanx anindita and veeral for that update..we guys are still learning the same old concept of managerial remuneration which has been laid down by the companies act, 1956....

Ankur S Kumar

204 Points Joined April 2012

Yes, that's true Tanveer ! Only by reading intelligent replies from such intelligent persons, do we get inspired to develop our knowledge of corporate law !

Thanks Veeral for your reply and Anindita for asking the query !

Regards,

Ankur Sharma