New guidelines for approval of managerial remuneration Effective from April 1, 1983 in supersession of guidelines of 1978 as modified in 1979

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....elines states that applications received on or after 1‑4‑1983 will be considered in accordance with revised guidelines. Applications received prior to this date but pending on that date will be considered for fixing remuneration for the period up to 31‑12‑1983 in accordance with the guidelines and the same for subsequent period in terms of the new guidelines. The question which arises in this behalf is as to whether the Department would necessitate/insist upon the fresh consent from the companies so as to be governed by the new guidelines? Can the earlier consent which related to the previous guidelines and was given at a time when the new guidelines were not even existent be technically treated as enough to cover th....

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....., issue of a notice under section 640B) will also have to be followed in all such cases. Point No. 3 ‑ There are companies whose shareholders have approved the salaries for their managing/whole‑time directors at Rs. 7,500 per month, plus 50 per cent commission and perquisites (subject to the approval of the Central Government). They had perforce to give a consent to be governed by the old guidelines and accordingly the salaries in those cases have been fixed at a level of Rs. 5,000 per month or less. Will such companies be asked to apply afresh under section 310 of the Companies Act, or can they simply make a representation and request for enhancement of the remuneration in terms of the revised guidelines. Clarification &#820....

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....es (in accordance with the revised guidelines) will also amount to proposals for increase in remuneration for which an application under section 310 will be necessary, and the prescribed legal procedure shall also have to be followed. Point No. 5 ‑ In case of payment of any fees or variable amount such as ex gratia, will such payment be treated as commission on net profits? Clarification ‑ No ex gratia payment is permissible under the guidelines. Point No. 6 ‑ Whether the ceiling of Rs. 45,000 applies to the perquisites mentioned in Part "A" of sub‑para III of the revised guidelines? Clarification ‑ The answer is in the affirmative. The ceiling of Rs. 45,000 per annum or an amount equal to the annual salary,....