The MCA vide Notification No. S.O. 1256 (E), dated March 18, 2021, has issued amendments to Schedule V to the Companies Act, 2013 (“Companies Act”), in Part II that deals with the remuneration, in a following manner:
- The words “or other director” has been added after the words “managerial person”, wherever occurred, in Section I, Section II and Section III of Part II of Schedule V to the Companies Act (except in clause (i) of the proviso to Section III of Part II of Schedule V to the Companies Act)
- Further, in Section III of Part II of Schedule V to the Companies Act, an explanation has been added stating “For the purposes of Section I, Section II and Section III of Schedule V to the Companies Act that the term “or other director” shall mean a non-executive director or an independent director”.
- Revised limit of maximum remuneration payable by companies having no profit or inadequate profit to managerial person and other director in a following manner as below:
|
Sl. No. |
Where the effective capital (in rupees) is |
Limit of yearly remuneration payable shall not exceed (in Rupees) in case of a managerial person |
Limit of yearly remuneration payable shall not exceed (in Rupees) in case of other director |
|
(i) |
Negative or less than 5 crores. |
60 lakhs |
12 Lakhs |
|
(ii) |
5 crores and above but less than 100 crores. |
84 lakhs | 17 Lakhs |
| (iii) |
100 crores and above but less than 250 crores. |
120 lakhs |
24 Lakhs |
|
(iv) |
250 crores and above. |
120 lakhs plus 0.01% of the effective capital in excess of ₹ 250 crores: |
24 Lakhs plus 0.01% of the effective capital in excess of ₹ 250 crores: |
The Notification can be accessed at: http://www.mca.gov.in/Ministry/pdf/AmendmentNotification_18032021.pdf