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 caps require closely held public companies to follow statutory limits and applicable schedule procedures. Managerial remuneration for closely held public limited companies is subject to statutory percentage limits of distributable profits with prescribed internal allocations-prioritising a single whole time manager and setting separate limits for non whole time appointments-and where profits are insufficient the applicable Schedule provides an alternative compliance and sanctioning mechanism.