[NOTE: The law stated in this post is effective from 12th September 2018. For the law applicable from 1st April 2014 till 11th September 2018, please visit here and here.]
Any managerial remuneration exceeding 11% of net profit limit may be payable subject to compliance of conditions given in Schedule V.
Where a remuneration of managerial personal exceed respective limits of 1%, 3% 5%, or 10% specified in section 197 in any manner, it becomes remuneration in case of the inadequate profit and attracts approval company in general meeting by special resolution, subject to the provisions of Schedule V.
We have discussed Section 197 as amended update 12th September 2018 earlier here. In this post, we will discuss managerial remuneration in case of inadequate profit as per Schedule V as on 12th September 2018.
When an applicant files a form for incorporation of a company, we need to select the designation and category of first directors in incorporation Form 32 (popularly called Spice) or wherever company appoints a director. There are four different categories of directors. We will discuss confusion regarding these categories of directors.
Posted in Chapter II - CA2013, Chapter XI - CA2013, Companies Act 2013
Tagged Additional Director, Alternate Director, chairman, chairperson, Director, Executive Director, Independent Director, Managing Dir, Managing Director, Nominee Director, Non - executive director, Professional Director, Promoter Director, Small shareholders’ Director, Whole – time Director
Ministry of Corporate Affairs, on 12th September 2016 issued notification amending Schedule V of the Companies Act, 2013. Schedule V deals with managerial remuneration in cases of inadequate profit and to some extend managerial appointment in public companies.