Payment of commission to Non-Whole Time Directors of the company under section 309(4)(b) of the Companies Act, 1956.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ayment of commission to Non-Whole Time Directors of the company under section 309(4)(b) of the Companies Act, 1956. <br>News and Press Release<br>Dated:- 30-3-2011<br><BR>General Circular No. 4/2011 F. No. 14/6/2011-CL-VII Government of India Ministry of Corporate Affairs 5th Floor, 'A' Wing, Shastri Bhawan, New Delhi, Dated:- 4th March, 2011 To, All Regional Directors All Registrars of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Companies The Institute of Company Secretaries of India The Institute of Chartered & Accountants of India The Institute of Cost and Works Accountants of India Subject:-Payment of commission to Non-Whole Time Directors of the company under section 309(4)(b) of the Companies Act, 1956. Companies are making applications to the Central Government for payment of remuneration in the form of commis....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sion to their Non-Whole Time Director(s) even when the total commission to be paid to all the Non-Whole Time Director(s) taken together falls within the limit of 1% of net profit of the company under Section 198 of the Act [when the company has a Whole Time Director(s) or a Managing Director(s)] or within the limit of 3% net profit of the company under Section 198 of the Act [when the company does....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... not have a Managing Director or a Non-Whole Time Director(s)] in addition to the sitting fee. This is based on a decision of this Ministry taken in File No. 6(a) CL-1/66 issued several decades back. 2. It has now been decided that a company shall not require approval of the Central Government for making payment of remuneration by way of commission to its Non- Whole Time Director(s) in addition t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o the sitting fee if the total commission to be paid to all those Non-Whole Time Directors does not exceed 1% of the net profit of the company if it has a Whole Time Director(s) or 3% of the net profit of the company if does not have a Managing Director or Whole Time Director(s). (L.K. Trivedi) Under Secretary<BR> News - Press release - PIB....