Compensation for loss of office limited to managing or whole-time directors, subject to exclusions and a three-year cap. A company may pay a managing or whole-time director or manager compensation for loss of office or retirement, but not other directors. Payments are prohibited in specified cases such as certain resignations, vacation of office, winding up due to director default, fraud, gross negligence or where the director brought about termination. Payments are capped at the remuneration for the remainder of the term or three years (whichever is shorter), calculated by average remuneration over the preceding three years or shorter period, and are barred where winding up within twelve months leaves insufficient assets to repay shareholders' capital. Remuneration for other services is permitted.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Compensation for loss of office limited to managing or whole-time directors, subject to exclusions and a three-year cap.
A company may pay a managing or whole-time director or manager compensation for loss of office or retirement, but not other directors. Payments are prohibited in specified cases such as certain resignations, vacation of office, winding up due to director default, fraud, gross negligence or where the director brought about termination. Payments are capped at the remuneration for the remainder of the term or three years (whichever is shorter), calculated by average remuneration over the preceding three years or shorter period, and are barred where winding up within twelve months leaves insufficient assets to repay shareholders' capital. Remuneration for other services is permitted.
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