30 January 2013
Can any one tell me, if a unlisted Public Company want to reduce the remuneration of Directors which is going beyond the ceiling prescribed under section 198 and 309 then what is the compliance under companies act?
When a resolution is already passed by the Members of the Company for remuneration of director up to some extent then to reduce such remuneration;Resolution of Board of the Company is a sufficient Compliance which is again subject to contract if any, entered with that Director regarding remuneration .
But again for good Corporate governance I will Suggest to call a General meeting and pass an Ordinary resolution in this behalf.
Further Companies Act provides only for Increase in remuneration not for reduction of remuneration.
CAclubindia
