A closely held public company has appointed Whole time directors complying the relevant provisions of companies act. However, while giving remuneration under sch XIII it has not complied with the condition of appointment of independent directors and forming of remuneration committee.
Kindly lemme know of the consequences/penalties of such non compliance
23 March 2011
If the company is a profit making company, no need to get the approval of remuneration committee.
Only non-profit making companies, are required to have the approval of remuneration committee.
As per the Act, the public limited companies are required to have non-executive directors for formation of Remuneration Committee and Audit Committee.
However as per the recent amendments notified by mca dated 8th Feb 2011, the definition of "remuneration committee" as given in Explanation IV of Part II is modified and is made applicable in respect of a "listed company" only.
CAclubindia
