Director Remuneration limit for Non-Executive/ Independent Director notified

Director Remuneration limit for Non-Executive/ Independent Director notified

Studycafe | Mar 19, 2021 | Views 2247620

Director Remuneration limit for Non-Executive/ Independent Director notified

Director Remuneration limit for Non-Executive/ Independent Director notified

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 18th March, 2021

S.O. 1256(E).—In exercise of the powers conferred by sub-sections (1) and (2) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following amendments to Schedule V of the said Act, namely:—

2. In Schedule V of the Companies Act, 2013, in PART II, under the heading ―REMUNERATION‖.-

(a) in Section I, in the first para, after the words ―managerial person or persons‖, the words ―or other director or directors‖ shall be inserted;

(b) in Section II,–

(i) after the words ―managerial personl, wherever occurred, the words ―or other director‖ shall be inserted;

(ii) for Table (A):, the following shall be substituted, namely.-

―(A):

(1)(2)(3)
Sl. No.Where the effective capital (in rupees) isLimit of yearly remuneration payable shall not exceed (in Rupees) in case of a managerial personLimit of yearly remuneration payable shall not exceed (in rupees) in case of another director
(i)Negative or less than 5 crores.60 lakhs12 Lakhs
(ii)5 crores and above but less than 100 crores.84 lakhs17 Lakhs
(iii)100 crores and above but less than 250 crores.120 lakhs24 Lakhs
(iv)250 crores and above.120 lakhs plus 0.01% of the effective capital in excess of Rs.250 crores:24 Lakhs plus 0.01% of the effective capital in excess of Rs.250 crores:

(c) in Section III, –

(i) after the words ―managerial person‖, wherever occurred, except in clause (i) of the proviso, the words ―or other director‖ shall be inserted;

(ii) after the words ―managerial persons‖, wherever occurred, the words ―or other directors‖ shall be inserted;

(iii) following explanation shall be inserted at the end, namely:-

“Explanation.– For the purposes of Section I, Section II and Section III, the term ―or other director‖ shall mean a non-executive director or an independent director.

[F. No. 1/5/2013-CL-V]

K. V. R. MURTY, Jt. Secy.

Note: The Schedule V of the Companies Act, 2013 came into force with effect from the 1st April, 2014 and was last amended vide notification number S.O. 4822(E) dated 12.09.2018 published in the Gazette of India.

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