Major Amendment in Ca Final Law Managerial
Remuneration Section 149, 197 & Schedule V
Schedule V — Part II — Remuneration
Explanation– For the purposes of Section I, Section II, and Section III, the term "or another director" shall mean:-
(a) a non-executive director or
(b) an independent director.
Section I - Remuneration payable by companies having profits.
Subject to the provisions of section 197, a company having profits in a financial year may pay remuneration to a managerial person or persons or other director or directors not exceeding the limits specified in such section.
Section II - Remuneration payable by companies having no profit
Where in any financial year during the currency of tenure of a managerial person or another director a company has no profits or its profits are inadequate, it may pay remuneration to the managerial person or another director not exceeding the limits under (A) and (B) given below:-
Effective Capital (rs. in crores)
Limit of yearly remuneration payable shall not exceed (rs.) In case of Managerial Person
Limit of yearly remuneration payable shall not exceed (rs.) In case of Other Director
Negative or < Rs. 5 cr
>Rs. 5 cr but < Rs. 100 cr
> Rs.100 cr but < Z 250 cr
>Rs. 250 crores
120 lakhs plus 0.01% of the effective capital in excess of Rs. 250 crores.
24 lakhs plus 0.01% of the effective capital in excess of Rs. 250 crores.