Section 217(2A) Companies Act

Yes pl.

Yes he is employee u/s 217(2A).

Whether Whole time Directos of the Company are employee u/s 217(2A)?

No the Managing Director is not a employee of the Company under Section 217(2A) of the Companies Act, 1956.

 Yes, MD is an employee of the Company. Many companies give this details in their report. Please check report of Infosys.

Dear Malav,

This is not the valid reason, many Companies also not give such details.

Neither  Managing Director  nor Whole Time Directors are employee of the Company,.

In my opinion the details of MD and WTD are not required to give under section 217(2A) as such they are not the employee of the Company under the Companies Act.  Moreover the under schedule VI the details of the managerial remuneration are required to give seperately, thus why we give same detail at two places.

Further, section 217(2A) also applies to the employees whose salary is less than Rs. 24 lacs per annum if their salary exceeds the salary of MD, WTD and Manager.

Dear Mr. Murlidharan

Yes, details of MD other employee required to be discloseed under section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 who drawing remuneration in excess of Rs.2.00 lacs per month [24.00 lacs per annum].

Dear All,

In my opinion MD and WTD are not the employees of the Company, they are the Directors of the company and being a director they have entrusted some additional responsibilities and liabilities, so how can we categorised a director of company as a employee.

Their are separate provisions for the remuneration of MD or WTD or Manager and also shows separetaly.

Under section 217(2A) the particulars of employees whose salary exceeds Rs. 24 Lacs per annum or 2 Lacs per month are required to be disclosed (as per clause i and ii) and clause iii the details of such employees are required to be given whose remuneration is more than the remuneration of MD or WTD or Manager.

Thus according to me the details of WTD and MD should not be shown under section 217(2A). 

Please correct me if i am wrong.

Agree with Mr. Malav

The remuneration given to the MD being a contractual employee should be given in the board report u/s 217 (2A) if the remuneration exceeds the prescribed limits.

However in response to an old corporate query Deptt expressed contrary view. But it was just a view and doesn't have the force of law in the form of DCA Circular/Notification.

Regards

Hi

I think this attachment will help you on the above matter.

Regards

Managing Director is not an employee of the company, within the maning of section 217 (2A)

Dear All,

As per Ramaiya Commentary, it has been cleary specified that Managing Director is not an employee of the Company but Companies as a part of Good Corporate Governance, give detials of the remuneration of MD, ED, WTD.

Priyanka

Under section 217(2A) of the Companies Act, 1956, the details of employees like name, designation, remuneration, qualification, date of employment, and last employment held etc. has to be disclosed in Directors Report of the Company if,

(1) Employee, employed during the whole year and was in receipt of remuneration of Rs. 24 Lakhs and above.

(2) Employed for part of the year, and was in receipt of remuneration of Rs. 2 lakhs p.m. and above.

(3) Employed for whole year or part of the year and was in receipt of the remuneration more than the Managing Director or Whole Time Director or Manager 

     and holding 2% or more of equity Shares of the company in his name or any of his/her relatives.

Remuneration will here means all the Expenses borne by the Company including retirement benefits (Means you can say CTC of the Company).

Is there any amendment for Sec 217(2A). Jayaraman Sir told it got change i.e. 60l pa and 5l pm. pls clarify from when and the details of amendment if any.