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Q & A
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A listed public company has passed resolution in Sept. 2010 for re-appointment of Managing Director for 5 years i.e (Sept. 2010 to Sept. 2015) & their remuneration in Remuneration Committee, Board Meeting & Shareholders Meeting under the Companies Act, 1956. The Co. has obtained MCA approval for remuneration payment (5% of Profits) to MD year 2013-14 due to inadequate Profits. The Company has inadequate Profits in current year 2014-15 and required MCA approval. The Co. has not passed any resolution in Remuneration Committee, Board Meeting & Shareholders Meeting under the Companies Act, 2013 during the Year 2014-15. As per MCA Circular 32/2014 dated 23.07.2014 – Clarification on transitional period for resolutions passed under the Companies Act, 1956. It is clarified that resolutions approved or passed by companies under relevant applicable provisions of the old act during the period from 01st Sept, 2013 to 31st March 2014 can be implemented in accordance with provisions of old act, notwithstanding the repeal of the relevant provisions subject to the conditions a) That the implementation of the resolution actually commenced before 01st April, 2014 and b) That this transitional arrangement will be available upto expiry of one year from the passing of the resolution or 6 months from the commencement of the corresponding provision in new Act whichever is later. Now what are the options available to the company: 1. Apply to MCA for their approval on the basis of resolutions passed under the Old Act – The Companies act, 1956. Or 2. The company pass related resolutions in next AGM -2015 and apply to MCA after passing of resolutions for waiver of remuneration payment made to MD during the year 2014-15.
Remuneration to KMP
Posted By: Sunil kumar agrawal 11 year(s) ago
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