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section 197 (managerial remuneration) and schedule V

449 views 4 replies

shiza khan

20 Points Posted on 25 March 2018

hello,
my querry is that if co wants to pay remuneration to its non executive directors and co is having
inadequate profit then whether it would be able to pay or not?
if yes then how becz schedule V covers only managerial persons

Replies (4)

sbhaktha

bcom + lawstudent @ present

109 Points Posted on 25 March 2018

this provision is not applicable to private company

shiza khan

20 Points Posted on 25 March 2018

m not asking abt pvt co..m asking abt non executive directors Jo public cos mein bhi hota h

CS Smreti

641 Points Posted on 25 March 2018

section 197 (3) is the relevant section. in case of loss remu to NED shall not be paid except in compliance to schedule V, other than as peescribed in section 197(5) i.e. 1 lacs...

Jatin Bajaj

2942 Points Posted on 26 March 2018

AS PER MCA NOTIFICATION IN YEAR 2016, IF MANAGERIAL PERSON IS ACTING IN THE PROFESSIONAL CAPACITY AND NON EXECUTIVE DIRECTOR CAN ACT IN THE PROFESSIONAL CAPICITY AND IF SUCH PERSON IS NOT ASSOCIATED WITH ANY OF THE DIRECTORS OR PROMOTER OF THE COMPANY OR SUCH PERSON IS NOT HAVING ANY INTEREST IN THE COMPANY AND IF SUCH PERSON POSSESS GRADUATE DEGREE AFTER HIS APPOINTMENT , THEN COMPANY CAN PAY REMUNERATION TO SUCH NON EXECUTIVE DIRECTOR BY PASSING RESOLUTION AND IF PASSING SR, THEN LIMIT SPECIFIED IN PART B , SCHEDULE 5 IS DIOUBLED. NO NEED OF ANY CG APPROVAL