Monday, 22 March 2021

Amendment to Schedule V of the companies Act 2013 : Revised limit of remuneration payable to managerial person/ other directors in case of loss

There is a revision in remuneration payable to managerial person/other directors in case of loss. Amendment in schedule V of company act 2013 vide notification no.S.O. 1256(E) dated 18 March 2021.


“S.O. 1256(E).In exercise of the powers conferred by sub-sections (1) and (2) of section 467 of

the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following

amendments to Schedule V of the said Act, namely: —

2. In Schedule V of the Companies Act, 2013, in PART II, under the heading” REMUNERATION”.-

(a) in Section I, in the first para, after the words ―managerial person or persons‖, the words ―or “other director or directors” shall be inserted.

(b) in Section II, --

(i) after the words ―managerial person‖, wherever occurred, the words” or other director” shall

be inserted.

(ii) for Table (A): the following shall be substituted, namely.

 

Sl.No

Where the effective capital

(in rupees) is

Limit of yearly

remuneration payable shall not exceed (in Rupess) in case of a managerial person

Limit of yearly remuneration payable shall not exceed (in rupees) in case of other director

1.

Negative or less than 5 crores.

60 lakhs

12 Lakhs

2.

5 crores and above but less

than 100 crores.

84 lakhs

17 Lakhs

3.

100 crores and above but less

than 250 crores.

120 lakhs

24 Lakhs

4.

250 crores and above.

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

(c) in Section III, –

(i) after the words” managerial person”, wherever occurred, except in clause (i) of the proviso, the words” or other director” shall be inserted.

(ii) after the words” managerial persons”, wherever occurred, the words” or other directors” shall be inserted.

(iii) following explanation shall be inserted at the end, namely: -

“Explanation. – For the purposes of Section I, Section II and Section III, the term” or other Director” shall mean a non-executive director or an independent director.”


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