Monthly Archives: January 2023

Executive Directors / Whole Time Directors of Public Listed Company What are additional compliances that are required to be complied with for payment of remuneration to Whole Time Directors / Executive directors of the listed entity? Remuneration payable to Whole Time Directors / Executive directors of listed entities is mainly governed by the Companies Act 2013. Whereas SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 [SEBI LODR] does not govern much with respect to payment of remuneration. There is only one aspect where SEBI LODR governs the payment of remuneration i.e. payment of remuneration to the [...]

Non-executive Directors are directors who are not in whole time employment of the company. These directors are remunerated by payment of sitting fees, commission on profits and fees for rendering professional services. How much sitting fees can be paid to non-executive directors? With respect to payment of sitting fees Companies Act, 2013 states the that maximum sitting fee that can be paid to non-executive directors is Rs 100,000 per meeting. Meetings here include all types of committee meetings wherein non-executive directors are comprised of. What is the maximum amount of remuneration that can be paid to [...]

What is meant by remuneration? Clause 78 of Section 2 of the Companies Act, 2013 defines “Remuneration” which means any money or its equivalent given or passed to any person for services rendered by him and includes perquisites as defined under the Income-tax Act, 1961. What is the Maximum Managerial Remuneration payable by a Public Company? As per Section 197(1) the total managerial remuneration payable by a public company, to its directors, including managing director and whole-time director, and its manager in respect of any financial year shall not exceed 11% of the net profits [...]