Schedule xiii query

Slab C of Section II of part II will be applicable only to listed companies and subsidiary of listed Company. In that case as per your effective capital, the remuneration can not exceed Rs.350,000. But you can also pay remuneration as per Slab B of Section II of part II with the same amount of remuneration. Notable difference is that when u pay remuneration as per slab C, prior approval of the central government is also required.

I think there is some error occured in the version available in the mca wed site. In the Slab C, it start with saying you can pay remuneration exceeding Rs.4800000 p.a or Rs,400000 per month but as per the slab u can  never pay remuneration exceeding Rs.48 lacs p.a. 

Responding to your query, it is the maximum amount of remuneration payable to the managerial person subject to the fullfillment of conditions laid down there.

 

 

So, acc. to u, whether there is a violation as Co. if paying remuneration more than rs. 4,65,000/- per month ? If so what is the remedy

Also, it is exceeding 48,00,000/- everywhere & that is not a mistake of MCA.

 

Yes it’s a violation of the Companies Act, 1956 and the Company is liable for prosecution and penalty as per sub section (7) to (10) of Section 269. Since in ur case the remuneration exceeds Schedule XIII limit, the central govt approval should have been obtained. The application needs to be made within 90 days from the date of appointment. if you are within the time limit make application to the C.Govt for its approval. If you have not filed the resolution with ROC, then see whether it is possible to change the resolutions (Board Meeting and General Meetings) and reimburse the excess remuneration paid to him or you can go for compounding. See the following link for the Companies Act, 1956 https://www.mca.gov.in/Ministry/pdf/Companies_Act_1956_13jun2011.pdf Refer Schedule XIII Slab C Second coulum heading. there seems to be an error

I want to make one thing very clear to u again that the remuneration of around Rs. 4,65,000/- is paid collectively for 2 Directors.

Individual salary is Rs. 2,00,000/- & Rs. 2,65,000/-

Also when the limits of remuneration is the matter of concern, there is a Notification dated 14.07.2011 stating that we can pay any amount in case of loss also only if he is paid in a professional capacity & he is in no way related to Promoters/Directors. 

 

The limit mentioned in schedule XIII is an individual limit.Individual salary of Rs.2,00,000/- & Rs. 2,65,000/- is well within the limits

One more point to be noted that there is a Notification dated 14.07.2011 stating that we can pay any amount (more than 4 lakhs p.m. & which can run into crores) in case of loss also only if he is paid in a professional capacity & he is in no way related to Promoters/Directors.  

 

Only if the Company is a listed company or a subsidiary of a listed Company.

I don't think it is applicable for listed & its subsidiaries Cos. only

It is applicable for all public Cos. also.

Notificaiton no. G.S.R. 70(E) dated 8th February, 2011 has made para C of section II of Part II of Schedule XIII applicable only to listed Companies and subsidiaries of listed Companies.