9911796707
TMI BlogAppointment of Managerial Personnel and payment of Managerial Remuneration in case of Companies having no profit or inadequate profit - rationalization thereof.X X X X Extracts X X X X X X X X Extracts X X X X ..... of Public Companies are submitting applications to the Department of Company Affairs for approval of the Central Govt. for appointment of and/or payment of remuneration to managerial personnel in excess of the limits prescribed in sections 269, 310, 311 & 387 and in terms of section 198(4) read with schedule XIII to the Companies Act, 1956,which provides scales of remuneration (salary, dearness allowance, perquisites and any other allowance). 2. The scales of monthly remuneration prescribed in para 1 of section II of part II of Schedule XIII have since been revised vide notification GSR No. 215(E) dated 02.03.2000. The revised scales are as under: - Where the effective capital of the company is Monthly remuneration payable shall not excee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany as may be reflected by effective capital, Net worth, Turnover, Profit/loss, dividend declared, etc. (iv) Nature of industry - high technology area, core sector, infrastructure field, etc. (v) Export performance and net foreign exchange earned. (vi) Performance of the Company in socio-economic activities. (vii) General performance of Industry in the relevant sector (viii) Foreign investment and foreign collaborations (ix) Expansion/Diversification/Modernisation/Technology upgradation (x) Qualification, experience, period of association and contribution of the proposed appointee. (xi) Requirement of personal skill and challenges ahead (xii) Past remuneration of the proposed appointee. (xiii) Creativity/innovativenes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited accounts of the company for each of the last 5 financial years of the company are not enclosed. (vi) In case of foreign collaboration, certified copy of the FIPB approval letter(s) is not furnished. (vii) Remuneration drawn by the proposed appointee from the applicant company or from any other company during the past 3 years prior to the proposed date of appointment is not indicated in terms of monetary package. (viii) Requirements of section 316(2)/(4) of the Companies Act are not followed where the proposal is for appointment as managerial person in two or more than two companies and resolution is not passed by all the companies concerned. (ix) Estimated project cost and source of finance together with projected equity, posit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section (1). (ii) In providing any other benefit or amenity free of charge or at a concessional rate to any of the persons aforesaid; (iii) In respect of any obligation or service which but for such expenditure by the company, would have been incurred by any of the persons aforesaid; and (iv) To effect any insurance on the life, or to provide any pension, annuity or gratuity for any of the person aforesaid or his spouse or child. The term 'Salary' under the provisions of the Income Tax Act has been defined to include all payments received by a person in employment and includes wages, fees, commission, Perquisites, profits in lieu of or in addition to salary, advance salary, pension, gratuity, encashment of leave etc. Certain items ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts have been furnished: - (i) Proper application fee in the manner provided vide GSR No. 501(E) dtd. 6.7.99. (ii) Copies of public notices in English and in local newspaper in local language. (iii) Monetary value of each of the perquisites and allowances and total remuneration package (in the form of statement annexed) valued as per actual cost. (iv) Appropriate and clear resolution in support of the proposal. (v) In case of appointment as Managerial personnel in two or more companies the manner in which compliance of section 316(2)/(4) has been made. (vi) Reasons for loss/inadequacy of profit, steps taken to improve the financial performance and future projections. (vii) Full & proper justification for proposed appointment/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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