Managerial remuniration

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Sanjay Agarwal (Querist)
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17 September 2011 Dear all
can anyone tell me that what is the calculation of manager remuneration as per company act rules of up to 11% and when is implement in public company and which heads and ledger come into in this head...........

I'll waiting for your valuable reply.

Thanks in advance..

Hari Beldona

Hari Beldona (Expert)
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17 September 2011 1.Managerial[to director(s)] remuneration shall not exceed 11% of the net profits in case of public company/subsidiary of public company as per section 198 of the Companies Act, 1956 when adequate profits are there.
2.When the company has no profit or inadequate profits managerial remuneration should not be paid without the approval of the Central Government.
3.Any fees payable to directors is excluded from managerial remuneration.
4.Head of account:
Group Level: Salary, Commission,allowances etc.
Account Level-1.Directors
2.Employees