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August 2011

Waiver of approval of Central Government for payment of remuneration to professional managerial person by companies having no profits or inadequate profits.

By Sejal Vasa, Company Secretary
Reading Time 1 mins
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The Ministry vide Notification dated 14th July 2011 made amendments to Schedule XIII part II section II pertaining to remuneration payable by companies having no profits or inadequate profits. Conditions to be fulfilled for waiver of approval of the Central Govt. for managerial personnel of subsidiary companies have also been listed.

Approval is now waived if managerial personnel do not have any interest in the capital of the company or its holding company, directly or indirectly or through other statutory structures or related to the directors or promoters of the company or its holding company at any time during the period of two years prior to the date of appointment and have a graduate-level qualification with expertise in the field of their profession.

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