Managerial remuneration - In case of absence or inadequacy of profits ‑ When approval of the Central Government is not required as per in terms of the sub‑section as recast by the Companies (Amendment) Act, 1988 - Companies Law - Circular : No. 3,

Circular : No. 3, dated 13 4 1989. Subject:- Managerial remuneration - In case of absence or inadequacy of profits When approval of the Central Government is not required as per in terms of the sub section as recast by the Companies (Amendment) Act, 1988 In the event of loss or inadequacy of profits, approval of the Central Government is not required for payment of remuneration if (a) the appointment had been in accordance with the terms and conditions specified in Schedule XIII; and (b) the resolution passed in the general meeting provided for a cut1 of 10 per cent of the salary proposed to be paid, in terms of paragraph 2 of Part III of Schedule XIII to the Act. Where it is proposed to pay remuneration by way of commission only in terms of para 2(ii) (under sub head Commission ) of Part II of Schedule XIII, no remuneration shall be payable to the appointee in the event of loss.