Increase in director’s remuneration requires Government sanction ‑ Director rendering services ordinarily expected to be rendered by him ‑ Whether remuneration paid for services required approval of Central Government
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Government approval for director remuneration required before payment; retrospective validation generally refused absent exceptional delay. Increase in director remuneration or payments effectively for duties ordinarily expected of a director require prior Government approval; reasonable reimbursement of expenses is allowed. Professional fees for services beyond ordinary directoral duties may differ, but any payment overlapping directoral functions needs sanction. Companies must obtain approval before paying remuneration or effecting appointments, as retrospective validation will generally be refused absent unavoidable delay.
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.
Government approval for director remuneration required before payment; retrospective validation generally refused absent exceptional delay.
Increase in director remuneration or payments effectively for duties ordinarily expected of a director require prior Government approval; reasonable reimbursement of expenses is allowed. Professional fees for services beyond ordinary directoral duties may differ, but any payment overlapping directoral functions needs sanction. Companies must obtain approval before paying remuneration or effecting appointments, as retrospective validation will generally be refused absent unavoidable delay.
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