Conditions for appointment of managing/whole-time Director, etc.

Application of revised Schedule XIII governs appointments and remuneration; increases allowed without Central Government approval except where specific conditions apply.

The revised Schedule XIII governs appointments and remuneration of managing/whole-time directors and managers from its notification; increases in remuneration for incumbents may be made from that date without Central Government approval unless earlier approval imposed specific conditions, which remain binding. For salary and perquisites the effective capital is calculated as at the last date of the financial year preceding the year of appointment or fixation/revision, except companies incorporated in the same financial year may use the date preceding appointment.