In pursuance of its policy of Minimum Government-Maximum Governance and providing Ease of Doing Business to the law-abiding Corporates of this country, the Ministry of Corporate Affairs (MCA) has notified commencement of important Amendments to the Companies Act.
Now with effect from 12th September, 2018, approval of the Central Government shall no longer be required for increase in the payment of remuneration to the managerial personnel (in excess of 11 per cent of the net profit of a company).
With the issue of this Notification, five Amendments brought forth to the Companies Act 2013, in the Companies (Amendment) Act, 2017, covering Amendments to Sections 196, 197, 198, 200 and 201 of the Companies Act, 2013, stand effected.
The MCA has issued commencement notification to notify the following sections of the Companies (Amendment) Act, 2017.
|SI. No.||Section no. of the Companies (Amendment) Act, 2017||Corresponding section of the Companies Act, 2013||Effective from|
|1.||Section 66||Amendment in section 196 – Appointment of Managing Director, Whole-time Director or Manager||12 September 2018|
|2.||Section 67||Amendment in section 197 – Overall Maximum Managerial Remuneration and Managerial Remuneration in Case of Absence or Inadequacy of Profits|
|3.||Section 68||Amendment in section 198 – Calculation of Profits|
|4.||Section 69||Amendment in section 200 – Central Government or Company to Fix Limit with Regard to Remuneration|
|5.||Section 70||Amendment in section 201 – Forms of, and Procedure in Relation to, Certain Applications|
Government of India
Ministry of Corporate Affairs
New Delhi, 12.09.2018
S.O. __ (E).- In exercise of the powers conferred by sub‑section (2) of section 1 of the Companies (Amendment) Act, 2017 (1 of 2018), the Central Government hereby appoints the 12th September, 2018 as the date on which the provisions of sections 66 to 70 (both inclusive) of the said Act shall come into force.
[File No. 1/5/2013-CL-V]
Joint Secretary to the Government of India