21 June 2010
Following are the queries regarding managerial remuneration. 1) The limits of remuneration given in schedule XIII in case of loss/inadequate profit is for one managerial personnel or all of them together. 2)If royalty is paid to director for allowing the company to use the trade mark (which is held by him in his personal capacity) , than whether the same to be included in the ceiling limits specified u/s 198 and 309. 3) If the proposed director (who will receive remuneration) is relative of the existing director whether provision of section 314 of the Act to be complied with.
21 June 2010
1) The limits are individual limits and not for all managerial personnel together.
2) In my view any form of remuneration would get covered.
3) If the person would be appointed as a managerial personnel, then remuneration would be as per SEc 309 and not 314. If the appointment is only to an office or place of profit, then SEc 314 would be applicable. SEc 314 is not applicable for MD / WTD
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