urgent- Remuneration of Managing Director

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2010 A public ltd. unlisted company has reappointed MD and has increased his remuneration which is not in accordance of shedule xiii, no special resolution was passed and no central government approval is obtained.The company has not started commercial operations yet. What consequencies company may have to face now and what remedies are available.

Ankur Garg

Ankur Garg (Expert)
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28 June 2010 Hi,

In your case section 209(5A) and (5B) are applicable i.e. director have to refund the entire remuneration to the company and the amount is in the possession of the dir in trust for the company.

Please tell to suggest the remedy---is your company is lose making company keeping in view the managerial remuneration.

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2010 Thanks a lot ankur sir i would like to inform as i earlier missed a point that company has not started commercial operations yet....??

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Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2010 hi,

sir is it section 309(5A), (5B)

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2010 sir kidly guide me on this matter...