INCREASING MANAGERIAL REMUNERATIONS
For the
companies having no profits or inadequate profits, limits of managerial
remuneration under schedule XIII to the Companies Act, 1956 have
been revised.
Based
on effective capital of the company, earlier limits were Rs. 75,000/-
to Rs. 2,00,000/- per month. These have now been revised to Rs.
1,50,000/- to Rs. 4,00,000/- per month and linked to good corporate
governance practices.
The decision was
taken as a liberalizing measure and to encourage good corporate
governance. The inflation that has taken place since the previous
limits were fixed, was also taken into consideration.
This information
was given by the Union Minister of Law, Justice and Company Affairs,
Shri Arun Jaitley in a written reply to a question from S/Shri
Kapil Sibal and Rajiv Ranjan Singh 'Lalan' in the Rajya Sabha
today.
