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SECTION 197

HIMANSHU KANSAL (Student CA FINAL) (219 Points)

19 March 2018

IN CASE OF MORE THAN ONE MD OR WTD LIMIT GIVEN FOR 1 MD OR WTD IS APPLICABLE OR NOT

I MEAN TOTAL REMUNERATION AS DEFINED IF MAXIMUM 10%.

AND IN CASE OF ONLY 1 IT IS 5%.

THEN THIS 5% IS APPLICABLE AS PER PERSON LIMIT IF THERE ARE MORE THAN 1 OR NOT

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5 Replies

Dushyant Garg (48 Points)
Replied 19 March 2018

obviously no

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Jatin Bajaj (CS) (2930 Points)
Replied 19 March 2018

As per the provisions of Section 197 of the Companies Act 2013 total remuneration payable by public Company to its directors including managing Director, Whole Time Director and manager shall not exceed 11% of the net profit of the Company agregate in the financial year.

if there is one managing or whole time Director then remuneration paid to such one managing or whole time shall not exceed 5% of the net profit of the Company.

But if there is more than one MD or Whole Time Director then remuneration paid to all such shall not exceed 10% of the net profit of the Company.

Further remuneration paid to other Director who are neither managing or whole time director then remuneration shall not exceed 1% of the net profit of the Company and 3% in any other case

HIMANSHU KANSAL (Student CA FINAL) (219 Points)
Replied 19 March 2018

THAT MEANS IF I HAVE 2 DIRECTORS ONE MD AND ONE WTD

THEN BIFURCATION CAN BE ANY PERCENTAGE SUBJECT TO TOTAL OF 10%

I MEAN IT CAN BE 9%+1%, 8%+2%.......etc.

1 Like

Jatin Bajaj (CS) (2930 Points)
Replied 20 March 2018

yes it should be agregate of 10%

md shahadat (88 Points)
Replied 30 August 2018

but payble to any one manager or one whole time director or managing director will not exceed 5%
am i right?
if yes than how can we pay 8 % or 9% to any one?
plz ansr