Managerial remuneration - Increase in director’s remuneration requires Government sanction ‑ Government’s approval is dispensed with in cases where the increase in remuneration. - Companies Law - Circular : No. 3,

Circular : No. 3, dated 13 4 1989. Subject:- Managerial remuneration - Increase in director s remuneration requires Government sanction Government s approval is dispensed with in cases where the increase in remuneration. Approval of the Central Government will not be required in cases where the increase in remuneration is in accordance with the terms and conditions specified in Part II read with Part III of Schedule XIII. However, no return is required to be filed with the concerned Registrar of Companies and no further resolution in respect of paragraph 1 of Part III will be required to be passed if the proposed increase is already covered by an earlier resolution of the shareholders. Similarly, resolution regarding 10 per cent cut will also not be required, if covered by an earlier resolution.