The Ministry of Corporate Affairs (MCA) notified the amendment in the director’s remuneration.
The notification seeks to amend Schedule V of the Companies Act, 2013, in PART II, under the heading “Remuneration”.
In Section I, in the first para, after the words “managerial person or persons”, the words “or other director or directors” shall be inserted.
In Section II, after the words “managerial person”, wherever occurred, the words “or other director” shall be inserted.
Where the effective capital is less than Rs. 5 crores then the limit of yearly remuneration payable shall not exceed Rs.60 lakhs in case of a managerial person and limit of yearly remuneration payable shall not exceed Rs. 12 Lakhs in case of other directors.
Where the effective capital is Rs.5 crores and above but less than Rs.100 crores then the limit of yearly remuneration payable shall not exceed Rs.84 lakhs in case of a managerial person and limit of yearly remuneration payable shall not exceed Rs.17 Lakhs in case of other directors.
Where the effective capital is Rs. 100 crores and above but less than 250 crores then the limit of yearly remuneration payable shall not exceed Rs.120 lakhs in case of a managerial person and limit of yearly remuneration payable shall not exceed Rs.24 lakhs in case of other directors.
Where the effective capital is Rs.250 crores and above then the limit of yearly remuneration payable shall not exceed Rs.120 lakhs plus 0.01% of the effective capital in excess of Rs.250 crores and limit of yearly remuneration payable shall not exceed 24 Lakhs plus 0.01% of the effective capital in excess of Rs.250 crores.
It is noteworthy that the word ‘other director’ shall mean a non-executive director or an independent director.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in
