In a unlisted public co.(having Paid up cap More than 5 crore) an employee who is going to be appointed as Manager and his proposed remuneration would be 1crore p a. Does the co require Central govt approval or not?
26 November 2011
Kindly refer section 387 for manager remuneration. As per section 387 A manager of a company may, subject to the provisions of section 198, receive remuneration either by way of a monthly payment, or by way of a specific percentage, 5% of the “net profits” of the company calculated in the manner laid down in sections 349 and 350.
Provided that except with the approval of the Central Government such remuneration shall not exceed in the aggregate five per cent of the net profits.
CAclubindia
