20 September 2011
In calculation of limit of 10% of remuneration under sec 198 do we need to calculate the percentage of holding co. or subsidiary co. If we calculate 10% of profit u/sec 198 r.w. sec 309 of a subsidiary company and if it is above the limit of 10% then do we need to take approval of CG.
In the context of Notification dated 14th July on this matter the remuneration of director of subsidiary company will be the remuneration paid by holding company and for calculating 10% of NP u/s. 198 the limit of 10% shall be calculate from subsidiary co or holding co. or profits of holding and subsidiary to be added.
I would like to bring your attention to the provisions of section 269(6) of the companies act 1956 which provides as unde....
no director of a company who is in receipt of any commision from the company and who is either in the whole time employment of the company or a managing director shall be entitled to receive any commission or other remuneration from any subsidiary of such company. i hope your query be solved by this information
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