24 February 2010
Increase in remuneration and requirement for approval of the Central Government
Section 310 stipulates that in case of a public company, or a private company which is a subsidiary of a public company, any provision relating to increase in the remuneration of any director including a managing or whole-time director, or any amendment thereof, which purports to increase or has the effect of increasing, whether directly or indirectly the amount thereof shall not have any effect—
(a) in cases where Schedule XIII is applicable, unless such increase is in accordance with the conditions specified in that Schedule; and
(b) in any other case, unless it is approved by the Central Government; and the amendment shall become void if, and in so far as, it is disapproved by that Government.
The provision relating to the remuneration may be contained in the company's Memorandum or Articles, or in any agreement entered into by it, or in any resolution passed by the company in general meeting or by its Board of directors.
Following are the other important provisions in this regard:—
(1) Approval of the Central Government shall be obtained where the provision for increase in remuneration is not in accordance with the provisions of Schedule XIII to the Act. In order to obtain approval of the Central Government, application shall be made in the prescribed e-Form 25A. (Previously it was required to submit in the Form 26, which has been merged with an e-Form 25A vide Notification No. GSR 56(E) dated 10th Feb., 2006)
(2) Section 310 does not apply to an independent private company. It also does not apply to a Government Company — DCA Notification No. GSR 235, dated 31-1-1978.
24 February 2010
Whether hard copy is required to be sent to Company Law Board for Compounding of offence. And if we have to send the hard copy What is the amount of dd to be made favouring "Pay and Accounts Officer".
CAclubindia
