In case of inadequate profit or loss, remuneration can be paid to only MD/WTD/manager And not any other non executive directors.
??? Yes/No
Replies (4)
Quick Summary
This discussion clarifies the rules regarding remuneration for non-executive directors, particularly in cases of inadequate profit or loss. Currently, only MD/WTD/managers can receive payment under such circumstances. However, the Companies Amendment Bill 2020 proposed allowing remuneration for non-executive directors even during losses. A recent notification from the MCA in March 2021 has further amended Schedule V, extending these provisions to other directors as well.
Yes. An amendment is proposed in Companies Amendment Bill 2020 for paying remuneration to non executive directors in the event of losses or inadequate profits.