Relevant Date: 18th March 2021

Introduced by -MCA Notification dated 18th March 2021.

Purpose of the Notification: Amendments in the Part II of the Schedule V of the Companies Act, 2013.

Relevant Amendments: –

1. Remuneration

a. In Section I of Schedule V of the Companies Act, 2013, 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 

Sr. No. Effective Capital

(in Rupees)

Limit of yearly remuneration payable shall not exceed in case of Managerial Person Limit of yearly remuneration payable shall not exceed in case of Director
1 Negative or less than 5 Cr. 60 Lakhs 12 Lakhs
2 5 Cr. and above but less than 100 Cr. 84 Lakh 17 Lakhs
3 100 Cr. and above but less than 250 Cr. 120 Lakhs 24 Lakhs
4 250 Cr. 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 crore.

c. In Section III as well after the words “managerial person”, whenever occurred, except in clause (i) of the words “or other director’ shall be inserted.

Explanation: for the purpose of the abovementioned sections of schedule V of the Companies Act, 2013 the term “or other director” shall mean a non-executive director or Independent Director.”

Title Notification No. Date
MCA notifies amendment in Section 149 & 197 of Companies Act 2013 Notification No. S.O.1255(E) 18/03/2021
Remuneration Limit for non-executive/independent director notified Notification No. S.O. 1256(E) 18/03/2021

 

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2 Comments

  1. M M SURANA. Parag Surana & Associates, Chartered Accountants,Chennai says:

    Pl let me know from which date it is effective, accordingly remuneration may be paid

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