Section 198

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Neetu Gupta (Querist)
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30 March 2012 Does Section 198 of Companies Act 1956 is applicable on Closely held limited company?
Our's is a Limited Company but not listed all the shares are allotted to the employees of the company so i want to ask whether section 198 is applicable to us or not?

Please provide me your expert opinion

Ajay Mishra

Ajay Mishra (Expert)
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30 March 2012 Hi

Section 198 of the Companies Act, 1956 deal with overall maximum managerial remuneration t in case of absence or inadequate profits.

This section will apply public company whether it is listed or not and private company which is subsidiary of public company.

Regards