General Circular No.
\n07\/2015<\/p>\n
F. No. 1\/5\/2013-CL-V<\/p>\n
Government of India<\/p>\n
Ministry of Corporate
\nAffairs<\/p>\n
5th Floor, A Wing,
\nShastri Bhavan,<\/p>\n
Dr R.P. Road, New
\nDelhi<\/p>\n
Dated: 10th April,
\n2015<\/p>\n
To<\/p>\n
All Regional
\nDirectors, <\/p>\n
All Registrars of Companies,<\/p>\n
All Stakeholders. <\/p>\n
Subject: Remuneration to managerial person under Schedule
\nXIII of the Companies Act, 1956 – Clarification with regard to payment for
\nperiod. <\/p>\n
Sir, <\/p>\n
Stakeholders have drawn attention
\nto the provisions of Schedule XIII (sixth proviso to Para (C) of Section II of
\nPart II) of the Companies Act, 1956 (Earlier Act) and as clarified vide
\nCircular number 14\/ 11\/2012-CL-VII dated 16th August, 2012, which allowed
\nlisted companies and their subsidiaries to pay remuneration, without approval
\nof Central Government, in excess of limits specified in para II Para (C) of
\nsuch Schedule if the managerial person met the conditions specified therein.
\nStakeholders have expressed that since similar provisions are not available in
\nthe Schedule V of the Companies Act, 2013, there is a need for a clarification
\nthat a managerial person appointed in accordance with such provision of
\nSchedule XIII of Earlier Act may receive relevant remuneration for the period as
\napproved by the company in accordance with such provisions of Earlier Act. <\/p>\n
2. The matter has been examined
\nin the light of earlier clarifications on transitional matters issued by the
\nMinistry. It is clarified that a managerial person referred to in para 1 above
\nmay continue to receive remuneration for his remaining term in accordance with
\nterms and conditions approved by company as per relevant provisions of Schedule
\nXIII of earlier Act even if the part of his\/her tenure falls after 1st April,
\n2014. <\/p>\n
3. This issues with the approval of the competent authority.\n<\/p>\n
Yours faithfully <\/p>\n
(K.M.S. Narayanan)<\/p>\n
Assistant Director (Policy)<\/p>\n
23387263 <\/p>\n
Copy to: – 1. e-Governance Section and web contents Officer
\nto place this circular on the Ministry website <\/p>\n
2. Guard File.<\/p>\n","protected":false},"excerpt":{"rendered":"