Office of place of profit – Rs. 10,000 limit under section 314(1)(b) of Companies Act raised to Rs. 50,000 and Rs. 20,000 limit under section 314(1B) raised to Rs. 2.50 Lakhs
The Central Government vide its powers confirmed under section 642 of the Companies Act , 1956 has raised the total monthly remuneration for the purpose of Clause (b) of sub section (1) of section 314, Rs.10,000 limit u/s 314(1)(b) of Companies Act raised to Rs.50,000 & Rs.20,000 limit u/s 314(1B)) raised to Rs.2,50,000. Section 314 of The Companies Act, 1956 states that a Director etc., is not to hold office or place of profit except with the consent of the company accorded by a special resolution and at remuneration as may be prescribed by the Central Government.
COMPANIES (CENTRAL GOVERNMENT’S) GENERAL RULES AND FORMS (AMENDMENT) RULES, 2011 – SUBSTITUTION OF RULE 10C
NOTIFICATION [F. NO. 17/174/2011-CL.V], DATED 7-7-2011
Notification No. G.S.R. 514(E): In exercise of the powers conferred by clauses (a) and (b) of sub-section (1) of section 642 of the Companies Act, 1956 (1 of 1956) and all other powers hereunto enabling the Central Government hereby makes the following rules, further to amend the Companies (Central Government’s) General Rules and Forms, 1956 namely:-
Short title and commencement
1. (1) These rules may be called the Companies (Central Government’s) General Rules and Forms (Amendment) Rules, 2011.
(2) They shall come into force with effect from the date of publication in the official Gazette.
2. The existing rule 10C shall be substituted by the following rule 10C :
“(1) Rule 10C.—The total monthly remuneration for the purpose of clause (b) of sub-section (1) of section 314, shall not be less than rupees fifty thousand.
(2) The total monthly remuneration, for the purpose of sub-section (1B) of section 314, shall not be less than rupees two lakhs and fifty thousand.”
[F No 17/174/2011-CL.V]
J.N. Tikku,
Joint Director
Note- The Principal notification was published vide number G.S.R. 432 dated 18th January 1956 and last amended vide G.S.R. 408 (E) dated the 26th May 2011.
