Minister of State for Corporate Affairs, Mr. R.P.N. Singh has said that the Government regulates the remuneration of managing directors / whole-time directors / managers (board level positions) in accordance with provisions of Schedule XIII of the Companies Act, 1956. Listed Companies and subsidiaries of Listed Companies in India which are loss making / have inadequate profits require Government approval for paying remuneration in excess of ceiling stipulated therein.

The Minster was replying to a question by Meenakshi Nataranajan in the Lok Sabha recently. .

Remuneration limits for company directors: Government approval required for listed-company subsidiaries with losses exceeding statutory ceiling. Regulation addresses payment of remuneration to board-level officers in government companies and their subsidiaries under the statutory remuneration ceiling. Listed companies and subsidiaries of listed companies that are loss-making or have inadequate profits must obtain Government approval to pay remuneration in excess of the prescribed ceiling, in accordance with Schedule XIII of the Companies Act, 1956.