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 |
Author Bio
Pl let me know from which date it is effective, accordingly remuneration may be paid
The effective date of the notification w.e.f 01st day of April 2021.