Managerial remuneration

[BVC&Co CharteredAccountants]

Is there any restriction under Company Law for managerial remuneration of closely held public limited company

[Prakash Bhandari]

the restiction for mangerial remuneration is specified in sec 309 and sec XIII of the companies Act. Broadly it is 11% profits , in it 5% to one individual having fultime appointment and 1 % for non wholetime appointment. In case of insufficient profit as per SCH XIII

AI Summary

Managerial Remuneration Limits in Closely Held Public Companies Explained: Section 309 & Schedule XIII of Companies Act A query was raised regarding restrictions under Company Law for managerial remuneration in closely held public limited companies. The response indicated that such restrictions are outlined in Section 309 and Schedule XIII of the Companies Act. Generally, the limit is 11% of profits, with 5% allocated to an individual with a full-time appointment and 1% for a non-whole-time appointment. In cases of insufficient profit, Schedule XIII provides further guidance.