SCHEDULE X111

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BHUMIKA GULATI (Querist)
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22 August 2010 HELLO
I HAVE A DOUBT ABOUT MANAGERIAL REMUNERATION....
WHILE I AUDIT THE ACCOUNT OF A PUBLIC LIMITED COMPANY ,THEY PROVIDE THE REMUNERATION AS PER SCHEDULE X111 OF THE COMPANY ACT..THEIR EFFECTIVE CAPITAL IS RS. 7 CRORE SO THE MANAGERIAL REMUNERATION IS RS 1,25,000 PM..THAT MEANS RS 15 LACS PER ANNUM BUT IN THE BOOK OF ACCOUNT THEY PROVIDE 22 LACS P.A...WHILE READING THE PROVISION CONTAINED IN SCHEDULE X111 THEY CAN TAKE THE OPTION 2 BY PASSING A SPECIAL RESOLUTION IN THE GENERAL MEETING ...NO APPROVAL OF THE CENTRAL GOVERNMENT IS REQUIRED ....ANY FORM IS TO SUBMITTED IN THE ROC ....JUST TELL ME WHETHER I AM CORRECT OR NOT
OR ANY LEGAL FORMAILITY REMAINS

Jagruti (CS)

Jagruti (CS) (Expert)
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24 August 2010 Schedule III provide remuneration of Managerial Person (MP) in 2 case.
1. Companies having adequate profit
2. Companies having the inadequate profit or losses.

In first case, Company can give remuneration to MP as approved by memebrs in General Meeting which will be within the limit as stated in Section 198 & 309 i.e. as per Section I of PArt II of Sc XIII.

In Second case, Company have to comply with Section II of PArt II of Sc XIII.
For this remuneration payable depends on Effective capital. Thus only in 2nd case question of calculating effective Capital comes in consideration.

Central Government approval is required in case Company do not comply with Schedule X III or wants to pay remuneraiton in execess of limit as per Sections 198 or 309.

Form to be file are:

Incase of MD - Form 32, 23 & 25C if within limit or 25A for CG approval.

In other case all above forms execpt form 23.