One closely held public limited company (converted from private limited company in 2008) is having authorized capital of Rs. 5 crore and paid up capital of Rs. 2 crores. Company is having three directors as part of management without any nomenclature like MD or WTD.
Company has made net profit of Rs. 67 Lacs after considering managerial remuneration for FY 08-09. Company has given total managerial remuneration of Rs. 38.80 Lacs as salary and commission (not guarantee commission) to all three directors in FY 08-09. By experience, all directors are technical ones.
What are the consequences pursuant to section 198, 269, 309 and Schedule XIII of the Companies Act, 1956?
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