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: –
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
|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.”
|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|