Brokerage classification: management charges treated as brokerage, prohibiting payments beyond prescribed rates and only actual expenses reimbursed. Management charges or manager's fees paid to agents for inviting deposits are to be treated as brokerage under the Companies (Acceptance of Deposits) Rules; payments in excess of prescribed brokerage rates contravene the Rules. Companies may, however, reimburse agents for actual expenses such as advertising and printing but must not pay additional remuneration beyond those actual expenses.
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.
Brokerage classification: management charges treated as brokerage, prohibiting payments beyond prescribed rates and only actual expenses reimbursed.
Management charges or manager's fees paid to agents for inviting deposits are to be treated as brokerage under the Companies (Acceptance of Deposits) Rules; payments in excess of prescribed brokerage rates contravene the Rules. Companies may, however, reimburse agents for actual expenses such as advertising and printing but must not pay additional remuneration beyond those actual expenses.
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