Remuneration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2013 if any annual increment is paid to MD, does it amount to revision of remuneration?

if yes whether approval of Board and Shareholder is required?

Ankur Garg

Ankur Garg (Expert)
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01 May 2013 If you pay any increased remuneration to your MD, which is more than approved by shareholders, the same increased remuneration would be considered as revision of remuneration.

For increased remuneration you have to take fresh approval of shareholders read with section 309, 198, 310 and schedule XIII, if your company is a public company. Form 25C is required to be filed with ROC.

However strict provisions related to remuneration are not applicable to a private company.