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Section 199 of the Companies Act 2013: Recovery of Remuneration in Certain Cases

SECTION-199 (Recovery of Remuneration in Certain Cases) under CHAPTER-XIII (Appointment and Remuneration of Managerial Personnel) of the Companies Act, 2013

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.

Extra Notes for Readers

(1) The Companies Act, 2013 received the assent of the President on the 29th August, 2013 (Published in the Gazette of India, Extraordinary, Part II - Section 1 by Ministry of Law and Justice, Legislative Department on 30th August, 2013) - link

(2) Section 199 of the Companies Act 2013 was notified by MCA Notification S.O. 902(E) dated 26th March 2014 (w.e.f. 1st April, 2014) - link

(3) Further, refer the Companies (Appointment and Remuneration of Managerial PersonnelRules, 2014 (w.e.f. 1st April, 2014) - link

[Also check amendments, if any, to the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

This page was last updated on 23rd April, 2017.

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