Notification for amendment to Schedule V of Companies Act, 2013

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....ous company law" (b) in part Il, for section Il, the following section shall be substituted, namely:  "Section II Remuneration payable by companies having no profit or inadequate profit without Central Government approval Where in any financial year during the currency of tenure of a managerial person, a company has no profits or its profits are inadequate, it may, without Central Government approval, pay remuneration to the managerial person not exceeding the limits under (A) and (B) given below:- (A)   : (1) (2) Where the effective capital is Limit of yearly remuneration payable shall not exceed (Rupees) (i) Negative or less than 5 crores 60 lakhs (ii) 5 crores and above but less than 100 crores 84 lakhs ....

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....f this section shall apply, if- (i) payment of remuneration is approved by a resolution passed by the Board and, in the case of a company covered under sub-section (l) of section 178 also by the Nomination and Remuneration Committee; (ii) the company has not committed any default in repayment Of any of its debts (including public deposits) or debentures or interest payable thereon for a continuous period of thirty days in the preceding financial year before the date of appointment of such managerial person and in case of a default, the company obtains prior approval from secured creditors for the proposed remuneration and the fact of Such prior approval having been obtained is mentioned in the explanatory statement to the notice conveni....