Section 199: Recovery of remuneration in certain cases
This section is for getting back excess pay from directors or managers when a company's financial statements have to be redone due to fraud or non-compliance.
The section, clause by clause
What the section says
In plain terms
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.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. The words “the Central Government or” omitted by Act 1 of 2018, s. 69 (w.e.f. 12-9-2018).
- 2. The words “this Chapter” omitted by s. 70, ibid. (w.e.f. 12-9-2018).
- 3. Subs. by s. 70, ibid. for “any of the sections aforesaid” (w.e.f. 12-9-2018).
Search the whole Act, or ask it a question, in the interactive browser.
Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.