Section 197
Sadhana (CS) (181 Points)
09 March 2016
Whether section 197 of CA2013 is applicable to private Ltd? How to determine inadequate profit in case of private company?
Megha Choudhary
(Management Trainee)
(541 Points)
Replied 09 March 2016
applicable on private companies
1. BR for approval of managerial remuneration
2. approval of nomineratn & remuneration committee
3. SR
4. ensure compliance with rule 7 of companies appointment & remuneration.
5. eform mgt-14 for filing wd ROC with SR and explanatory statement
file MR-2 WDN 30 DAYS OF RESOLUTION FOR FIXING REMUNERATION OR CHANGE IN T)C
RISHABH ARORA
(Company Secretary in Practice )
(194 Points)
Replied 09 March 2016
197. Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits
(1) The total managerial remuneration payable by a public company, to its directors,......................................................
RISHABH ARORA
(Company Secretary in Practice )
(194 Points)
Replied 09 March 2016
Refer Notification No. G,S.R. 464(E) dated 06.06.2015 by Ministry of Corporate Affairs stating Exemptions to Private Limited Companies, where Section 196(4) of the Companies Act, 2013 exempted by the said notification.
Section 196(4) contains the provision to refer section 197 and schedule of the Companies Act, 2013.
As section 196(4) has been exempted, the private companies not bind to comply with the provisions of Section 197 of the Companies Act, 2013.
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