1.

What is the maximum limit for the Managerial remuneration?

Answer»

Managerial Remuneration: The Managerial remuneration is payable to a person’s appointed u/s 196 of the Act. The Term remuneration means any money or its equivalent given for their services.

Adequate profits: A Public Company can pay remuneration to its directors including Managing Director and Whole-time Directors, and its managers which shall not exceed 11% of the net profit.Maximum Remuneration Payable by a Company to its Managerial Personnel – No adequate Profits.

Remuneration Payable by a company in case where there is no profit or inadequacy of profit and remuneration payable is detailed below:

Where Effective Capital isLimit of yearly Remuneration payable shall not exceed (Rupees)
(i)less than Rs 5 CroreRs 30 lakh
(ii)Above Rs 5 Crore and less than Rs 100 CroreRs 42 lakh
(iii)Rs 5 Crore and above but less than Rs 100 CroreRs 60 lakh
(iv)Rs 250 Crore and aboveRs 60 lakh plus 9.91% of the effective capital in excess of Rs 250 Crore


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