Major Amendment in Ca Final Law Managerial
Remuneration Section 149, 197 & Schedule V
Schedule V — Part II — Remuneration
Explanation– For the purposes of Section I, Section II, and Section III, the term "or another director" shall mean:-
(a) a non-executive director or
(b) an independent director.
Section I - Remuneration payable by companies having profits.
Subject to the provisions of section 197, a company having profits in a financial year may pay remuneration to a managerial person or persons or other director or directors not exceeding the limits specified in such section.
Section II - Remuneration payable by companies having no profit
Where in any financial year during the currency of tenure of a managerial person or another director a company has no profits or its profits are inadequate, it may pay remuneration to the managerial person or another director not exceeding the limits under (A) and (B) given below:-
(A)
S.No. | Effective Capital (rs. in crores)
| Limit of yearly remuneration payable shall not exceed (rs.) In case of Managerial Person
| Limit of yearly remuneration payable shall not exceed (rs.) In case of Other Director
|
1. | Negative or < Rs. 5 cr | 60 lakhs | 12 lakhs |
2. | >Rs. 5 cr but < Rs. 100 cr | 84 lakhs | 17 lakhs |
3. | > Rs.100 cr but < Z 250 cr | 120 lakhs | 24 lakhs |
4. | >Rs. 250 crores | 120 lakhs plus 0.01% of the effective capital in excess of Rs. 250 crores. | 24 lakhs plus 0.01% of the effective capital in excess of Rs. 250 crores. |
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