Section 197

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

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,......................................................

sec 197(3) dekho

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.