What is Recovery of remuneration in certain cases What is Central Government or company to fix limit with regard to remuneration Section 199 and 200 of Indian Companies Act 2013

Recovery of remuneration in certain cases and Central Government or company to fix limit with regard to remuneration are defined under Section 199 and 200 of Indian Companies Act 2013. Provisions under these sections are:

 


 

Section 199 of Indian Companies Act 2013 "Recovery of remuneration in certain cases"

Without prejudice to any liability incurred under the provisions of this Act or any other law for the time being in force, where a company is required to re-state its financial statements due to fraud or non-compliance with any requirement under this Act and the rules made thereunder, the company shall recover from any past or present managing director or whole-time director or manager or Chief Executive Officer (by whatever name called) who, during the period for which the financial statements are required to be re-stated, received the remuneration (including stock option) in excess of what would have been payable to him as per restatement of financial statements.

 

Section 200 of Indian Companies Act 2013 "Central Government or company to fix limit with regard to remuneration"

Notwithstanding anything contained in this Chapter, the Central Government or a company may, while according its approval under section 196, to any appointment or to any remuneration under section 197 in respect of cases where the company has inadequate or no profits, fix the remuneration within the limits specified in this Act, at such amount or percentage of profits of the company, as it may deem fit and while fixing the remuneration, the Central Government or the company shall have regard to -

(a) the financial position of the company;

(b) the remuneration or commission drawn by the individual concerned in any other capacity;

(c) the remuneration or commission drawn by him from any other company;

(d) professional qualifications and experience of the individual concerned;

(e) such other matters as may be prescribed.

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