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Managerial remuneration payable under the Companies Act 2013

Location:
Gurgaon, Haryana - India

Published:
2024-09-26 12:15:08

Contact Info:
Nikita Patel

Website URL: https://www.registerkaro.in/post/section-197-overall-maximum-managerial-remuneration-and-managerial-remuneration-in-case-of-absence

Description: • Overall management compensation payable by a public business to its directors, managing director, and full-time director, as well as its manager, for each fiscal year: Condition Max Remuneration in any financial year Company with one Managing director/whole time director/manager 5% of the net profits of the company Company with more than one Managing director/whole time director/manager 10% of the net profits of the company Overall Limit on Managerial Remuneration 11% of the net profits of the company Remuneration payable to directors who are neither managing directors nor whole-time directors For directors who are neither managing director or whole-time directors 1% of the net profits of the company if there is a managing director/whole time director If there is a director who is neither a Managing director/whole time director 3% of the net profits of the company if there is no managing director/whole time director The aforementioned percentages are exclusive of any fees due under section 197. (5). Prior to this point, any managerial compensation over 11% required government approval. Yet, a public business may now pay its managerial staff compensation in excess of 11% without prior clearance from the Central Government. The shareholders’ approval of a special resolution will suffice. If a corporation has defaulted on its obligations or failed to fulfil its obligations, authorization from the lenders will be required. When a corporation has insufficient or no profits: In the event that a corporation has insufficient or no earnings in any fiscal year, no compensation shall be paid unless these rules are met. Where the effective capital is: Limits of yearly remuneration Negative or less than 5 Crores 60 Lakhs 5 crores and above but less than 100 Crores 84 Lakhs 100 Crores and above but less than 250 Crores 120 Lakhs 250 Crores and above 120 Lakhs plus 0.01% of the effective capital in excess of 250 Crores

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