<h1>India Eases Rules: No Central Approval Needed for Non-Whole Time Directors' Commissions per Companies Act, Section 198.</h1> The Ministry of Corporate Affairs in India has clarified that companies no longer need Central Government approval to pay commissions to Non-Whole Time Directors, provided the total commission remains within specified limits. If a company has a Whole Time Director, the commission must not exceed 1% of net profits; if not, the limit is 3%. This decision aligns with Section 198 of the Companies Act, 1956, and applies in addition to any sitting fees. This update aims to simplify the remuneration process for Non-Whole Time Directors, referencing a longstanding decision from decades ago.