~ Agarwal

QJ(JClasses• ·
40 + 45 + 50 +12 X 36 months
3.75 lacs .m. X 36 months
135 lacs

Answer ll
In case of an ordinary director: Further, if a person is only an ordinary director but neither the Managin
Director nor a whole time director nor a manager of the company, he shall not be eligible t &
compensation for \ass of office, or as consideration for retirement from office or in connection withos!~~
loss or retirement.
~ ~ kl
& Question 21: Appointment of KMP • 203
. ._ an
ABC Ltd., un\~t~9 ~ompany having a paid up share ca~ital Qf ~ 19_CrorJS during the preceding financta1
~: year has appoint~~tShrlX. a Fellow member of the..lnst1tut~ Qf ~hartereci_A~cp~i:itant _of India as Chief
~ Financi~cerof the company who is appointed as Key Managenal Personnel u/s 203 of the Companies
~f Act. 2 . Shri X is also a Fellow member of the Institute of Company Secretaries of In_dia. The Company
~'('- - ~ "t as become vacant. ln order to reduce the administrative expenses, the Company proposes
\.. to appoint Shri X as Company Secretary in addition to Chief Financial Officer post. ether the proposal is
le all valid under the rovisions of the Com anies Act, 2013? 4 Marks 2018 - OS

Answer
Section 203 t : Com an shall have KMP
(A) Every USTED company or
(B) Every other PUBLIC company having PUSC ~ ~ 1O crores
shall have the following whole-time key managerial personnel,-
( t) Managing Director, or Chief Executive Officer or manager and in their absence, a whole-time director
[MD/CEO/M or WTD];
(2) Company Secretary [CS]; An.d
(3) Chief Financial Officer [CFO].

As the term used is 'whole time', therefore, 3 different individuals are required to hold these 3 key
· ·ons.

CoDClualon
As the t~rrn used is 'whole time', therefore, 3 different individuals are required to hold these 3 key positions.
ln view of the above, the company cannot appoint Mr. X as the Company Secretary of the company in
addition to his CFO post. Further, Section 203 of the Act specifically prescribes the word "and" between
Company Secretary and CFO. Thus, both the positions are to be held by separate persons.
ence, the ro osal of the com an to a oint Mr. X as the Com an Secret is not valid.

Qaeedon 22: Multiple Employments by KMP • 203

Mr. AMIT is the Managing Director of ANJ Limited, which is a non-government public company· The
drectorl of CHH Umited decided to appoint Mr. AMIT as the Managing Director of the company, ev_en
...... , Mr. AMIT decided not to vacate his place of office of Managing Director of ANJ Limited. An~
• Board meeting specifying a resolution containing the proposal of appointment of Mr. AMIT was se ded
die eliaft>le direc:ton of CHH Limited. 0_!1t of e~gm_ director~~! ~e~~~pax:,.y, six dJ~c;~<?I'! a~e; the
out..of them four directors gave consent to the resolution one director voted again . •on
101
and another director abstained from votin . The Board' of Directors seek our 0
 Ap poi ntm ent &
Remuneration of KMP
1111
lllilJ I
AMIT can be app ointCo ed as the Man · o-irec~or, of the company in this situation. Referring
~A"le rovision s of the . A aging Ma 201 8-O S
li~ m arues ct, 2013, adVJse them. 4 Marks

~ 203 3 : Mu lti le Em lo ent s

pan y exc ept in its
Awhole-time key man age rial pers ~nn el shall not hold office in mor e than one com
111,W"jfl'Y com pan y at the sam e time.
e per son as MD in mor e tha n 1 com pan
203 3 3rd Pro viso : App oin tme nt of sam
11.a1oimous BR . ector, if:-
that a com pan y may app omt or employ a pers on as its Ma nae ine Dir
fJn)Vided also , r com pan y and
of one . and of not mor e tha n one othe
(A) he is the ~an aein a: Dir ecto r or ~an aee r ting of the Boa rd
or app rove d by a resolution pass ed at a mee
(B) such appomtment or emp loym ent 1s mad e t at the meeting and of which meeting, and
of the
con sen t of ALL the dire ctor s pre sen
with the in India.
ce has bee n given to all the dire ctor s then
resolution to be mov ed ther eat, specific noti
ating in the
Directors pres ent in the mee ting or particip
· ous Board Resolution mea ns that all the is not allo wed .
trality or Abstaining from voting
Meetin shou ld vote in Fav our. Even Neu

OD lacking. Hen ce, Mr.

In the given case, una nim ous con sens us of
all the directors pres ent at the mee ting was
ctor of CHH Limited .
Amit cannot be ap oint ed as a Man a in Dire
P 03 U IV\ ec
CNeatlon 23: Mu ltip le Em plo yme nts by KM :ctor..and....Managing Dire ctor
.__ and Mr. Moh an wer e app oin a as the Who - ime_ Dirs
will ing to
Limi cl., a holdin~ com pan y of. GIL, was
{f! !~~~~ly in Gop ilnd ustr ies Limited . IL). Raja
ctor and Mr. Mo an ~s Managmg J?i~e_c::o
r. Enu mer ate.. .the lega l
~~ ~~t Mr. Ram as its Who le-T ime Dire Mr. Ram and Mr. ~~
KMPs and decide on the ehg1bihty of
~"·~ ion as rega rds the holding of office by 3.
onn el in term s of the Companies Act, 201
~ t.ftfohan in Raja Limited as its man ager ial pers to his sud den resignation given on 1st Sep tem ber 202 0 in
if the office of Mr. Ram is vac ated du~ . ::::. it U,J --::::-- ~t'\,'I ',
20·2 1 Ci).J.A.J.~V c{ . ,
? 8 Marks MT P -
vjflo.o -. ~ ~P 4f a. µ 73':!j:B./.-f.
S. e c lb t (!)( l-'I): f>
. . .
AWho!~ ~ lo ent s Sec tion onn 203 3 J
el shal l not hold office m more than one com pan y exc ept 1n its
. . time key managerial pers
m an at the sam e time. in the Holding and then app oint ed in
does not say whe ther the pers on is appointed KMP first
or vice versa.
e tha n 1 com
~3n1 Proviso: A oin tme nt of sam e per son as MD in mor
~that a com pan y may app oint or emp loy a
pers on as its Ma nae ine Director, if :-
ll) he~thalso . and of not mor e tha n one , othe r com pan
y and

:P
ti) IUch e ~ID A& i,ne Dir ecto r or Ma nae er of one
rove d by a resolution pass ed at a mee ting
'llith 0 mtrnent or emp loym ent is mad e or app at the meeting and of which mee ting, and of the
l'eao1u .e ~se nt of ALL the dire ctor s pre sen t
has bee n given to all the dire ctor s then in
of the Boa rd

Indi a.
tion to be mov ed ther eat, spec ific noti ce
sa,
ed as the MD in the subsidiary or vice -ver
. of the hold ing com pan y is bein g app oint
ed b the 2nd a ointing Company.
Aaarwa1. All Rig hts Res erv ed. 3.2 7
 Siddharth
Agarwal
Classes®
Answer A
In the given case, Raja Limited is the holding company and Gopi Industries Limited (GIL) is th .
So, Mr. Ram can be appointed as WTD m · both _con:p1:rnes.
· Als_o, Mr. .M0 han can be appointed
e subs1ct·
as 1~.
both companies but UBR has to be passed by RaJa Limited for his appomtment as MD + (' .l 9€+ MD 1n
· ~et~iu.-y
Th Answer given in MTP is wron . They have ignored the fact that Sec 203(3) does not say wh th~
erson 1s a porn e . d"m subs1"diary or vice versa. e erthe
rst in the Holding andthen appomte

Section 203 4: Vacanc

If the office of any whole-time key managerial personnel is vacated, the resulting vacancy shall be filled-
by the Board at a meeting of the Board within a period of 6 months from the date of such vacancy. up

Answer B
Where, if the office of Mr. Ram is vacated on 1st September 2020, the resulting vacancy shall be filled-up by
the Board at a meeting of the Board within a period of 6 months from the date of such vacancy i.e.latest by
1st March, 2021.
Also, as per Section 167(1)(h), ifhe resigns from the subsidiary, GIL, then, he shall have to vacate the office
from the holding company, Raja Limited as well.

Question 24: Effective Ca i

Venus Ltd. is a widely held ·ste company having 2 executive directors who ar~chnocratsl functioning
in a PJ:Qfessional caga~ity)~ 1 , -~ __coJYlp~~ ~~s -~~ered...le.s.s_e un the last 4 years. The ~ t s to ..
enhan~~ t:I:ie re ~~@!!_,o~ of the e~utive directors to ~ 6 Lacs per month from existing remuneraaon on 1,
4 Lacs. Tiie dite as on 31 st March, 2016revealsthat the paid up capital of the com any is ~ 15 crores, Jc
accumulated losses ~ 11 crores an s ong term orrowings 5 crores. Besides, the company as O
0

fenn investments of~ 11 crores. The company's remuneration committee has recommended the proposal
and:e
ro
company is regular in repayment of its debt~ Analyze the proposition with reference 10 !he
nsofCo.Act,2013. &Marks Nov2017 7
I
t' Answer • l~IJ +S'-/ ==- -2.
I
uective
· ca·ital as er Schedule v . ~ ' , r1,
,.. ,,, :•.,: ,'\ \· 1
F th "' ,, ' t - I •
or e p~oses of Se~ion II of t~is Part. "effective capital" means the a1:1:re1:ate__Q{;:
~~ !!: P ;P
rud
sh~e capit~ (excl~dmg share application money or advances against shares);
3) Res~::~ th
an~~urpo~ e( ti~e :.emg standi~g to the credit of share premium account;
us exc u mg revaluation reserve)· al\S,
4) Long-term loans and deposits re bl aft ' 0ver dr
interest due on Joans unless fund~;y~ : er one year (excluding working capital Joans, ts)
Deductions from above;- ' an guarantee, etc., and other short-term arrangernen ~
1) Investments (except in case of investment b . . . al bt1sineSS
acquisition of shares stock debentu h Y an investment company whose pnncip
' , res or ot er s "f )
2) Accumulated losses and preliminary exp ecu~ ies '

·~
Calculation of Effective Ca ital·

Paid u Ca ital
Lon Term Borrowm 8
.
enses not wntten off.

e6·
oesef'I
Ot btS ~
© Siddharth Agarwal. All ivg
 : Inve stme nts
ated loss es
App oin tme nt &
Rem une rati on of KMP
II/(11)
(11)
ital as on 31st March 201 6
2

· e V: Remune ration pay able b com pan ies ha ·

h b for t Vin no profit or inade uate rofit
Smee the compar:iy . a~ een incu rrin g loss es t seve ral year s, the remunerati bl
on paya e shall not
exceed the Slab hrm ts m Part II of Sch edule V as show n belo w.
he paS

tion II - Rem une rati on a ableSch edu le V Part II .

b com anie s hav in no rofi
t or made uate rofit
Where in any fina ncia l yea r duri ng the c urre ncy of tenu re of ge1_
·
1al pers on or othe r director, a
its prof its are inad equa t ·t a mana
company h as no prof its or pers on or
ed, (Bm)a!, pay remunerat10n to the managerial
1
not exce edin g the limi ts und er (A)
other dire ctor an given below: _
A)
Limit of yea rly remuneration Limit of yearly remuneration
Effective Cap ital _payable sha ll not exce ed (f} pay able shall not exceed (?}
(f in crores) m case of Managerial Person in case of Other Director
60 lakhs 121akhs
(i) Neg ative or < t 5 er 171akhs
84 lakhs
(ii) ~ f 5 er but < t 100 er 24la khs
1201 akhs
(iii) ~ f 100 er but < t 2 5 0 er 24 lakhs plus 0.01% of the
(iv) ~ f 250 cror es 120 lakh s plus 0.01 % of the
effective capital in excess off 250
effective capi tal in excess off 250 crores.
crores.
ed by
of abo ve Lim its may be paid if the resolution pass
Provided that the rem une rati on in exc ess
TIO N.
the shareholders is a SPECIAL RESOLU

(B) ona l cap acit y.

r dire ctor who is functioning in a prof essi
In case of a man ager ial pers on or othe
i:emuneration as per item (A} may be paid , if:- ital ~ 0.5% of its PUSC of
ch man a rial erso n or othe r dire ctor is not havin an interest in the ca r
(1) ies directly or indirectly or through any othe
subsidiar
the com pany or its hold ing com pany or any of its
or its
.. statutory stru ctur es and
n2 any dire ct or indi rect inte rest or relat ed to the directors or promoters of the com pany
(u) not havi on or after the
at any time during the last 2 years before or
holding com pany or any of its subs idiar ies
... date of appo intm ent and the field in which the
(w) possesses grad uate leve l gualification
with expertise and specialised knowledge in

~~ ~~ ate s.
(A) and (B) of this sect ion shall apply, if-
further that the limits spec ified unde r items
oval of BOD/NRC is obta ined . ent of dues to an~ bank or public financial
company has not committed any default in paym r ~ecured creditor.
othe
nor non- conv ertib le debe ntur e holders or anyral mee tmg of the com pany for a peri od not
ns has been
Resolutio pass ed at the gene

3years:- as per (A) or,

IR has been passed for paym ent of remuneration .
as per (B).
• been pass ed for paym ent of remuneration
m~_~e_n!!_t~-t~o~-t~h~ejN~-o~t~1c~e~-fi~o~r~G~M~=·~-=-=-=-=-=-=---=:J

-•-·-
·~o~n!has!!~~b!!!e~e=n~~~iv!!e~n~-i~nj th~-e~_EEjx~-l~aEn~a_t~o~~}!S~ta~t_e~_
~~~ ~~~ ~~=

Ith AaarwaI. All Rig hts Res erve d.

 Siddharth.
Agarwal
Classes•
' .

Conclasion
,' The total remuneration that Venus Limited is inte~ding to pay to 2 technocr~ts_is t 144 lakhs p.a. from the ·
,· current remuneration off 96 lakhs per annum, which very well ~xceeds the linnt off 60 lakhs p.a.
The can be aid such remuneration by passing Special Resolution under (B) above.

Question 25: Managerial Remuneration - Schedule V

Mr. X, a Director of MN Ltd., was appointed as Managing Director on 1st April 2015. One of the tenns of
appointment was that in the absence of adequacy of profits or if the company had no profits in a particular ·
year, he will be paid remuneration in accordance with Schedule V. For the financial year ended Jlst March
2017, the company suffered heavy losses. The company was not in a position tq~ny remuneration but
he was paid ,-5.0 Jakhs for the year. The effective capital of the company is f 150 crores. Referring to the
provisions ofCompames Act; 2013, as contairted in Schedule V, exannne the validity of the above payment
ofremm1eration to Mr. X. 4 Marks Nov 2018-OS New ICAI Stud Material ' J,.,o 1..- . q . ~

Answer
Schedule V: Remuneration payable by companies havin2 no profit or inadequate profit
Sthedule V ~~rt II
Section II - Remuneration navable bv comnanies havine no nrofit or inadenuate nrofit
Limit of yearly remuneration Limit of yearly remuneration
Effective Capital payable shall not exceed (f) payable shall not exceed (t)
(t' in crores) in case of Mana2erial Person in case of Other Director
(i) Negative or< f 5 er 60lakhs 12 lakhs
(ii) ::!!: t 5 er but< f 100 er 84lakhs 17 lakhs
(iii) :e, 100 er but< f 250 er 120 lakhs 24 lakhs
(iv) :e f 250 crores 120 Iakhs plus 0.01% of the 24 lakhs plus 0.01% of the
effective capital in excess of~ 250 effective capital in excess oft 250
crores. crores.
Provided jhat the remuneration in excess of above Limits may be paid if the resolution passed byJ
the shareholders is a SPECIAL RESOLUTION.
.
:- - ~ ~

-
From the foregoing provisions as contained in Schedule V, the payment of t50 Iakh in the year of loss as
remWleration to Mr. Xis less than t120 Iakhs which is otherwise permissible when the effective capital of
the company is between flO0 crores and t250 crores. Thus, payment of t50 Jakhs being made to Mr.Xis
within the prescribed limit and can be validly made to him.

26: Bfl'ective Capital & Managerial Remuneration - Schedule v

cV, ,provided with the relevant extract of the financials of Tribute Company Limited for the financial
as on 31• March 2020 as below: ·
p cular,s . Amount t {'.
. ~ 1o,oo,oo,00.0° 0
Issued and Paid-u Share Ca ital s ,00,00,000
Share Premium Account .J.-- 25,00,000
ReReserves and Surplus (Amount oft 25,00,000 is included as Revaluation-..,_,.,
serve
Term loan re a able after 1 ear
>
+ 10
35,00,000

12 oo ooo
Current Borrowin 8 cash Credit
. Loan from Banks) l'-
• '
20,00,000

1 30 ~ ~1) -j--Z-Yf-1 0-J-/'I.,_,.,- ! O ~ Siddharth Agarwal. All Rights Reserved-

-::: 5i,9 ~ 'r gt.t V). ,CA

1?-l L
 No n- Cu rre nt inv es tm en
ts
Ap po in tm en t Et
Remuneration of KMP 11./
10,00,000
Ac cu mu lat ed Lo sse s 5,00,000
ff 3,00,000
Prelimin ex pe ns es no t wn•tten ° . . B W h~l~
. ..
.
l pe · · bo A - M an ag ing Direc tor , Mr 7
has 3 ma na ge ria 0 di re cto ~- Mr .
~ and M r C - Cm • rsD o~ m its ard ~ in case the company
. ire ~r . Ac co rdi ng to thell' terms ofappointment, accordance with :
~ • . din ary on pa yable to them shall be in
ge ria l rem W ier ati nsidering the
DO or ina de qu ate profi!
S• th e ma na ria l remuneration payable co
the tot al ma na ge
co mp ute · · -.
V, You ar e re qw re d to St ud M ate ria l
of Sc he du le V. Ne w IC AI

te of:-
th is Pa rt. "e ffe cti ve ca pital" m ea ns the a& ~e ea );
for the pw:poses of Se ct io n II of advances against shares
ca pit al (ex clu din g sh are application money or count;
1) The paid-up sh are
e be ing sta nd ing to the credit of share premium ac
tim
2) Amount, if any, for the e);
ser ve s an d su rp lus (ex cluding revaluation reserv ar (excluding working capital loans, over drafts,
Re
3)
an d de po sit s repayable after one ye rm arrangements)
4) Lo ng -term loa ns
les s fun de d, ba nk gu ara ntee, etc., and other short-te
interest du e on loans un
ncipal business is
Deductions fro m above:- inv est me nt by an inv est ment company whose pri
in ca se of
1) Investments (except ties),
, de be ntu res or other securi
acquisition of shares, stock no t wr itten off.
2) Accumulated losses
an d preliminary expe nses
Am ou nt
of Ef fec tiv e Ca pi ta l· -
Calculation /h 5,0 0,0 0,0 00
Partlculan al
+ - 25 ,00 ,00 0
Ca pit
Issued and Paid-up Share + 10,00 ,00 0
em ium Ac co un t 12 ,00 ,00 0
Add: Share Pr ex clu din g Revaluation Reserve
Add: Reserve s an d Su rpl us loans) (10 ,00 ,00 0)
n rep ay ab le aft er 1 ye ar (excluding working capital
Add: Term loa (5, 00 ,00 0)
urr en t inv est me nts (3, 00,00 0)
Less: Non-C
ed Lo sse s 5,2 9,0 0,0 00 .
Less: Accumulat
ns es
Less: Preliminary expe
l8'tkt1ve Canital ro fit
b co m an ies ha vin no rofit or in ad e ua te
le
V: Re mu ne ra tio n a ab Sc he du le V Pa rt II
no p~ o~ t or in ad eq uamute profit_
by co mp an ies ha ~n g ne ra tio n
n pa ya bl e Li mi t of ye ar ly re
Se cti on 11 • Re mu ne ra tio Li mi t of ye ar ly re mu ne ra tio n (t')
all no t ex ce ed (") pa ya bl e sh all no t ex ce ed
pa ya bl e sh r
an a eri al Pe rso n in ca se of Ot he r Di re cto
in ca se of M 12 lakhs
60 Iakhs 17 lakhs
Ne ati ve or < {' 5 er 84 Jakhs
er 241akhs
:i!: ' 5 er bu t < , 10 0 120lakhs s 0.0 1% of the
0 er 24 lakhs plu
:i!: ' 100 er bu t < {' 25 12 0 Jakhs plus 0.0 1% of
the ~ 25 0
:i!: ' 25 0 erores l in ex ces s of f 25 0 effective capit in excess of
al
effective capita crores.
crores.

. 3. 31
al. Al l Ri gh ts Re se rv ed
 Siddharth '
Agarwal ·
Classes
- .. ,,
-
®
.
·
.,

Provided that the remuneration in excess of above Limits may be paid if the resolution Passed
the sharehold ers is a SPECIAL RESOLUTION. by

Conclusion ·
Section II of Part II of Schedule V states that where the effective capital is ts crores and above but less th
t 100 crores, the remuneration payable shall not exceed t 84 lakhs for Managerial Persona and t 17 1~

for other Directors.

Maximum remuneration to Mr. A = t 84 lakhs p.a.
Maximum remuneration to Mr. B = ~ 84 lakhs p.a.
Maximum remuneration to Mr. C = ~ 17 Iakhs p.a.
f.-L
Question 27: N-lqJl~ of Directorship (165) and Schedule V
Excel Limited is listed ompany with a turnover oft 60 Crore in the FY 2016-2017 . The Company appoints
Ms.Ras the worn irector on tst March, 2017. Ms. R i~ alreadf a dir~ ctor i~ 12 comganies incl1,1ding 10
public companies. Also, Ms. R is a Chartered Accountant m pracnce. 0\7'~~ Al::,VJtrrchrit--rr
Further, also, Ms .. R, i~ a Director in ~ ~ other l!sted co~p~y, '_"h~~e she is_acting in a
· pro ess1on capac1 Smee lots of proposal for the holding of directorsh ip m vanous companies are lined
~ re s. R, so in order to retain her, the Remuneration and Nominatio n Committee proposed to
enhance the remuneration of Ms. R from 4 Laich per month to 6 Lakh per month. However, Supreme Limited
'11~,.J was running in losses in the last 2 years.- :J-W""
~!f" Evaluate in the light of the given facts, the following with reference to the provisions of the Companies Act,
l{o 2013:
V (i) The validity of appointment of Ms. R in Excel Limited.
b v- (ii) Analyse the proposition of enhancement ofremune ration of Ms. R in Supreme Ltd. (4
0 Marks) (Nov
~ ~ 20_2_0_-_N_S.___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___J

~ swer
Sr.,~~ Section 165 1 : Maximum number of directorships that can be held b an erson
p
No person, after the commencement 0 f thi A sh all hold office as a director, including
directorship in more than 20 . s ct, any alternate
• comparues at. the sam e rrme. p roVI· ded that the maximum number of PUBLIC
companies in which a p b
erson can e appomted as a director shall not exceed 10.
Answer i
In th_e instant case, since the directorship held b .
app~mtment in Excel Limited is not valid Alt . Y M~. R is ~ready 10 in public companies, so her
pubhc Companies, then she can be a . · d ematrvely, rf ~he resigns as a Director from one of the existing
ppomte as Woman Drrector in Excel Ltd.
~ V: Remuneration anies h 8 · rofit or inade uate profit
VPart
Whe anies havi
company has no ti . unng t e currency of tenure of . rofit
other dire t pro ts or its profits are inadequate it m a managena l person or other director, a
. c or not exceeding the limits under (A) and (B) a!, pay remunera
_
tion to the manageria l person or
. given below:

3.32 © Siddhart h A
garwal. All Rights Reserved ,
 Appointment &
P
M
llJ
ll
I
Remuneration o f KM

-A ) eration
Limit of ye ar ly remun
eration Limit of ye ar ly remun
ed (f)
Ef fe ct iv e Ca pi ta l _payable sh al l no t ex ce
ed (f) payable sh al l no t ex ce
in ca se of Other Dire
ctor
(f in cr or es ) m ca se of Managerial Pe rson
12 lakhs
60 lakhs
(i) Ne ~a tiv e or < ? 5 er 17 lakhs
100 er 84 la kh s
(ii) ::!!: ? 5 er bu t < ? 24 lakhs
t 25 0 er 12 0 lakhs th e
(iii) ::!!: ? 100 er bu t< of th e 24 lakhs plus 0.0 1% of
12 0 lakhs plus 0. 01 % cess of ? 250
(iv) ::!!: ? 25 0 cr or es ss of ? 250 effective capital in ex
effective capital in ex ce crores.
cr or es.
tion pa ss ed by
ce ss of ab ov e Li m its m ay be pa id if th e resolu
f Provided th at th e re m un er at io n in ex
ECIAL RESOLUTION.
the shareholders is a SP
nal capa city.
(B) di rec to r wh o is fun ctioning in a professio
ria l pe rso n or ot he r
In ca se of a ma na ge SC] of
m (A) m ay be paid. if :- ca12ital [< 0.5% of its PU
remuneration as pe r ite t ha vin g an y int ere st in the
he r
~h ma na ge ria l pe rso n or ot he r di re cto r is no idi ari es dir ec tly or ind irectly or through an y ot
(i) S!J its subs
in g co mp an y or an y of
the co mp an y or its ho ld 2any or its
sta tu to ry str uc tu re s an
d
d to the dir ec tors or pr om ote rs of the com1
t or rel ate aft er the
nQ t ha vi ng an y di re ct or indire ct inter es y tim e du rin g the las t 2 ye ars before or on or
(ii) an
y of its subsidiaries at
holding co m pa ny or an ich th e
d owledge in th e field in wh
da te Qf ap12ointment an qualification with ex pe rti se an d specialised kn
level
(iii) po ss es se s gr ad ua te
co mp an y op er ate s. apply. if-
ed un de r ite ms (A) an d (B) of this section shall
e limits specifi
Provided fu rth er th at th c.financial
C is obtained. es to an y bank or publi
{i) Approval ofBOD/NRt co m m itt ed an y de fa ul t in pa ym en t of du or.
(ii) Th e co mp an y ha s
no an y ot he r secured credit
lde rs or d no t
institution or no n- co nv
ert ib le de be nt ur e ho
e ge ne ral me eti ng of the co mp an y for a pe rio
at th
ions ha s be en pa ss ed
(iii) Following Resolut
ex ce ed in g 3 ye ar s:- tion as pe r (A) or.
R ha s be en pa ss ed fo r pa ym en t of remunera .
• OR /S en t
(B).
of remuneration as pe r nt to the Notice for GM .
pa ss ed fo r pa ym
• diff. bas been n ha s be en given in th e Explanatory Stateme
(iv) Re levant informatio
. in a pro fessional capacity in Su
pr em e Ltd,
An sw er ii) tic e an d ac tin g Special
nc e M s. R is a Ch ar ter ed Ac co un tan t in pr ac ca n be do ne by res olution pa ss ed by th e
Si tio n an d
or e. pr op os al to en ha nc e th e rem un era t of rem un er~ tio n. of Ms . R by Nomination
the ref em en
id pr op os al of en ha nc .
Resolution. He nc e µi e sain em e Lt d. wh ich is a listed company JS vahd
ee Su pr r (B) above.
Re mu ne rat ion Committ ne ra tio n by pa ssi ng Sp~~ial ResolytiQn unde
She ca n be oaid su ch re mu

0 Si dd ha rt h ~a
.a .. rv ed .
rw al . All Rights Re se