Central Government vide its notification dated 18th March, 2021, made the following amendment in Schedule V of Companies Act, 2013 :

Earlier, in case of loss or inadequate profit, managerial remuneration was payable to Executive directors only, but now after amendment, this situation will change. It means now remuneration can be paid to non-executive directors in case of loss or inadequate profits also.

Amount of remuneration payable shall be as under:


Where the effective capital [EC] (in ₹) is:

Limit of yearly remuneration payable shall not exceed (in ₹) in case of "a managerial person"

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

EC < 5 crores

(or negative)

60 Lakhs

12 Lakhs

5 crores ≤ EC < 100 crores

84 Lakhs

17 Lakhs

100 crores ≤ EC < 250 crores

120 Lakhs

24 Lakhs

250 crores ≤ EC

120 Lakhs plus 0.01% of [EC- ₹250 crores]

24 Lakhs plus 0.01% of [EC- ₹250 crores]

 

Note:- The term ‘other director’ shall mean a non-executive director or an independent director.


For official notification, click here



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