29 May 2011
In one Private Limited Company remuneration of Managing Director is increased in the Annual General Meeting? Is special resolution required? Is there any need to file Form 23 with ROC?
30 May 2011
Restrictions on managerial remuneration as stipulated in Section 309, 198 and Schedule XIII are applicable to public companies and their subsidiaries only. They do not apply to Private Limited Companies. So these Companies are free to fix the remuneration of its managerial persons by passing a Board Resolution. No approval of shareholders is required. However if already increased in AGM, ordinary resolution is sufficient.
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