Reporting Limit U/s. 217(2A) raised of Companies Act raised to Rs. 60 lakh per year/ Rs. 5 lakh per month
Companies (Particulars of Employees) Amendment Rules, 2011 – Reporting Limit U/s. 217(2A) raised
Amendment to section 217(2A) of companies Act, 1956, under amendment rules 2011
The Ministry of Corporate Affairs has vide notification dated 31st March 2011 enhanced the limits for the purpose of disclosure of particulars of employees in Directors report as requisite under Section 217 (2A) read with Companies (Particulars of Employees) Rules, 1975 from the existing limit of Rs. 24 lakh/ year/ Rs. 2 lakh per month to Rs. 60 lakh per year/ Rs. 5 lakh per month and by such notification also covers Government Companies for such disclosures.
The effect of the notification shall require the Companies including Government Companies to include a statement showing the name of every specified employee of the Company in their Board Report pursuant to Section 217 (2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Amendment Rules, 2011 which provides:
(i) If employed throughout the financial year, was in receipt of remuneration for that year which, in aggregate, was not less than Rs. Sixty Lakh for the year: or
(ii) if employed for a part of the financial year, was in receipt of remuneration for any part, of that year, at a rate which, in the aggregate was not less Rs. Five Lakh per month.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, PART II, SECTION 3, SUB SECTION (i) ]
GOVERNMENT OF INDIA, MINISTRY OF CORPORATE AFFAIRS
New Delhi, the 31 March, 2011
NOTIFICATION NO. G.S.R. 289(E), DATED 31-3-2011
In exercise of the powers conferred by sub-section (2A) of section 217 read with clause (a) of sub-section (1) of section 642 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules further to amend the Companies (Particulars of Employees) Rules, 1975, namely:-
1. (1) These rules may be called the Companies (Particulars of Employees) Amendment Rules, 2011.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Particulars of Employees) Rules, 1975 (hereinafter referred to as the said rules), in rule 1A, -
(i) in clause (a), for the words “rupees twenty-four lakhs”, the words “sixty lakh rupees” shall be substituted;
(ii) in clause (b), for the words “rupees two lakhs”, the words “five lakh rupees” shall be substituted.
3. In the first proviso to rule 2 of the said rules, -
(a) for the words “particulars of employees of companies”, the words “particulars of Government Companies and companies” shall be substituted;
(b) for the words “rupees twenty four lakhs per financial year or rupees two lakhs per month”, the words “sixty lakh rupees per financial year or five lakh rupees per month” shall be substituted.
[ F. No. 2/29/1998-CL.V ]
( Riluka Kumar )
Joint Secretary to the Government of India
Note.- The principal rules were published in the Gazette of India vide notification number G.S.R.695 (E), dated the 10th June, 1988 and subsequently amended vide notification numbers G.S.R 288(E), dated the 17th April, 2002 and G.S.R 212(E), dated the 24th March 2004 .