Government has prescribed percentage of profits for public limited companies and their subsidiaries – says R.P.N. Singh
For Public Limited Companies and their subsidiaries ceiling as percentage of profits is already prescribed. The Government also regulates the remuneration of managing directors / whole-time directors / managers (board level positions) of Public Limited Companies in accordance with the provisions of Schedule XIII of the Companies Act, 1956. Listed Companies and subsidiaries of Listed Companies in India which are loss making / have inadequate profits require Government approval for paying remuneration in excess of the existing ceiling limits stipulated therein. This was stated in Rajya Sabha yesterday by Minister of State for Corporate Affairs, Shri R.P.N. Singh, while replying to a question.