Section 200: Central Government or company to fix limit with regard to remuneration
This section allows the Central Government or a company to set a limit on the remuneration of directors and managers, taking into account various factors.
The section, clause by clause
What the section says
In plain terms
Notwithstanding anything contained in this Chapter, 1*** 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, 1*** 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.
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).
This section refers to
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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.