managerial remuneration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2010 A PVT. LTD. Converted into A LTD. 2 YRS Before --Mr. A appointed as MD by showing change in designation in Form 32(Form 25C not filed)- Salary as per Form 23 was different and actually paid is double the amt shown in F 23.Form 23 for inrease in rem. not filed. Max. remuneartion payable to all dirs has exceeded the overall limit. If salary falls under section II of part II of Sch XIII then approval of remu. committee is a condition
Please guide me what to do to comply with sec 198, 309 etc.

Ankur Garg

Ankur Garg (Expert)
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23 February 2010 You should refund the excess remuneration by virtue of section 309 (5A) and (5B).

Constitute remuneration committee and fix the managerial remuneration again with the approval of committee.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2010 Thank you Sir, but remuneration commitee should be formed with effect from??? and what steps should be taken to comply with the provisions. Please guide

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Rasesh

Rasesh (Expert)
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23 February 2010 The remuneration committee should be formed with current effect. In case you feel that you will require payment in excess of the limits prescribed under Sch XIII, then obtain Central Government approval for the same.