. Remuneration of Director Managerial Persons covered are Managing Director, Whole-time Director, Part time Directors and managers who shall be paid remuneration in accordance with provisions of Section of the Companies Act, . Managerial Remuneration The Managerial remuneration is payable to a person's appointed u/s of the Act. The Term remuneration means any money or its equivalent given or passed to any person for services rendered by him and includes perquisites.
. Value of rent-free or concession accom modation . Value any other items provided at free of cost or at concessional rate. .
. value of securities / sweat equity shares allotted or transferred by the employer or former employer to the employee. . a contribution made by an employer to an approved superannuation fund.
. Value of any other fringe benefit or amenity. . Stock options would be part of remuneration for all directors.
Forms of Managerial Remuneration . Based on Profit of the company . Based on Shareholders’ recommendations . Based on Shareholders’ and Central Government recommendations.
Remuneration Allowed to Managerial Person in case of Company’s having 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 % of the net profit and 12th Commerce Unit - - . . PM it may also be noted, when a Company has only one Managing Director or Whole-time Director or manager the remuneration payable shall not exceed % of net profits if it is more than one % as calculated in a manner laid down in section of the Companies Act, . Remuneration Payable by a company in case where is no profit or inadequacy of profit without Central Government and to pay remuneration in excess of the above limit is detailed below: Where Effective Capital is Limit of yearly Remuneration payable shall not exceed (Rupees) (i) Negative or less than ₹ Crore ₹ lakh (ii) ₹ Crore and above but less than ₹ Crore ₹ lakh (iii) ₹ Crores and above but less than ₹ Crore ₹ lakh (iv) ₹ Crore and above ₹ lakh plus .
% of the effective capital in excess of ₹ Crore.