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Waiver of cg approval-urgent

Desai (CS) (329 Points)

06 June 2016

Dear all

please suggest is there any circular / notification -where the approval of Central govt is waived for remuneration excedding 11 % of the net profits of the Company for listed public company ??

pleas suggest

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3 Replies

Desai (CS) (329 Points)
Replied 07 June 2016

Shri P.C.Agrawal sir,

please help me in interpreting the Section 197 (3) and (11)

Query :

1) when the Company has one managing Director and two Whole time directors , then the Remuneration of all 3 should not exceed 11 % of net profit of the Company ..The remuneration of all the 3 taken together is excedding the 11 % , but company has complied with the Schedule V , still Company will have to approval of CG in MR-2 , please suggest in light of Provision of Section 197 (3) and (11).?

regds

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 07 June 2016

No, CG approval is not required if requirements of Sch.V are complied with, as clearly mentioned in both the sub-sections.