Increase in Managerial remuneration

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Ashley

102 Points Posted on 17 June 2008

Mr X was appointed as WTD in pay scale of

( Rs. 150000/- - Rs. 20000/- - Rs. Rs. 200000) after requisite approval of Board in April 2006. shareholders approved the same in May 2006. The shareholders approved the aforesaid resolution with a clause stating that remuneration shall not exceed max limits as specified in Sch XIII to companies act and also enpowered board to grant more than one increment with recourse to shareholders for its approval. The appointee has not got any increement till date and now Board wants to give increment of Rs. 50000/- per month to Mr X from 1st April 2007 to 31st March 2008 and Rs. 50000/- per month from 1st April 2008 onwards,

Please let me know the compliances/returns to be filed in this regard

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Replies (2)

Ashley

102 Points Posted on 19 June 2008

i guess the Board can grant the increment in pay scale approved by the shareholders. no other compliances required.

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Preeti Gandhi

Company Secretary

44 Points Posted on 25 June 2008

Yes the Board can do so. No forms are to filed.

In our Company, we did the same. In the shareholders resolution appointing the WTD, it was provided that the Board is authorised to give annual increment in the remuneration within the limits of Schedule XIII.

Regards

Preeti Gandhi