URGENT - REDUCTION IN MD REMUNERATION

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Dear Friends I am working in a closely held public limited company. Our MD was recently re-appointed by the Board / Members for a period of 3 years with payment of remuneration. The appointment and payment of remuneration was approved by Remuneration Committee, Board of Directors and Shareholders (at AGM). Consequent to the economic slow down it has been proposed to reduce the salaries of all employees and staff by 10% wef January 2009. this also includes Managing Director. Kindly clarify whether reduction in Managing Director remuneration requires approval of Board of Directors and Shareholders of the company. with regards Muralidharan
Replies (1)

MD can himself surrender part of his salary voluntarily and for this no approval is required.  You may just inform the Board of this in the next meeting.  This will help you in increasing the salary again when the position improves without getting approval of Board/members.

Thanks

 


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