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Section 197

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sapana maheshwari

1 Points Posted on 31 July 2020

Which resolution ( ordinary Or special) is required for the purpose of paying remuneration to Director in excess of % specified in the Act i.e. 1% , 3%, 5% & 10% ??

Replies (2)

Quick Summary

This discussion clarifies that a Special Resolution is required when paying a director remuneration that exceeds the percentages specified in the Act (1%, 3%, 5%, and 10%). According to Section 197, read with the second proviso to sub-section 1, company members must pass a special resolution to authorise such excess payments.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 31 July 2020

Special Resolution required for this purpose.

Harish choursiya

Student cs professional

249 Points Posted on 31 July 2020

Pursuance to provision of section 197 read with second proviso to sub-section 1 which authorise to pay remuneration in excess of % as mention in the Act,2013 it self by passing the special resolution by members of the company.