Schedule v

hey mate,

pursuant to sch V, literal interpretation does not exclude private companies from the compliance whereas section 197(1) and(2) conclusively points for public companies only while 197 (3) specifies " a company " which means it includes both public company and private company

sch V compliance requires CG approval; companies other than listed companies and subsi of listed , have been given relaxation under RULE 7 which exempt such companies from CG approval for providing remuneration as required under sch V but nothing is specified for appointment

harmonious interpretation concludes, that a private company which is not a subsi of listed company can pay remuneration in case of inadequate profits without obtaining CG approval but as far as appointment of manager MD WTD is concerned , sch V shall be applicable.

That means appointment of MD to a private company calls for section 164 ,196, sch V.

Thanks