Commission to non-whole time directors allowed without central approval when within statutory net profit limits and sitting fee retained. Companies need not seek Central Government approval to pay commission to Non-Whole Time Directors where the aggregate commission does not exceed one percent of net profit if the company has a Whole Time Director or Managing Director, or three percent of net profit where it has no Managing Director or Whole Time Director; such commission may be paid in addition to the sitting fee.
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.
Commission to non-whole time directors allowed without central approval when within statutory net profit limits and sitting fee retained.
Companies need not seek Central Government approval to pay commission to Non-Whole Time Directors where the aggregate commission does not exceed one percent of net profit if the company has a Whole Time Director or Managing Director, or three percent of net profit where it has no Managing Director or Whole Time Director; such commission may be paid in addition to the sitting fee.
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