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sec 197 director remuneration
If any Co. Wants to pay more than 11% to its directors, than whether it needs to take permission from CG first or it need to pass SR in GM.
Replies (3)
AS PER THE NOTIFICATION IN YEAR 2016, IF THE COMPANY FOLLOWS PART B OF SCHEDULE V , THEN NO NEED OF CG APPROVAL . THE COMPANY CAN PAY REMUNERATION TO IT DIRECTOR AS PER THE LIMITS SPECIFIED IN SCHEDULE V PART . HOWEVER SUCH LIMIT SHALL BE DOUBLE IF SR IS PASSED.
NO CG APPROVAL IS REQUIRED TO MANGERIAL PERSONNAL OR PROFESSIONAL DIRECTORS EVEN IF THE LIMIT SPECIFIED IN THE SCHEDULE V PART 2 IS MORE THAN THE DOUBLE.
PROVIDED SUCH MANAGERAIAL PERSONNAL SHALL NOT HAVE INTREST IN THE COMPANY OR IS NOT ASSOCIATED TO ANY DIRECTORS OR PROMOTERS OF THE COMPANY AND SHALL ALSO POSSESS GRADUATION DEGREE
But sir question is still unanswered, whose permission is first required, do Co. need to take permission of CG first or need to pass SR in GM first.??
Members though no where it is mentioned that prior approval but CG does not approve till members approval is alao filed.
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