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Sec 200 Companies Act 2013: Central Govt/ Co. fix limit (Remuneration)

SECTION-200 (Central Government or Company to Fix Limit with Regard to Remuneration) under CHAPTER-XIII (Appointment and Remuneration of Managerial Personnel) of the Companies Act, 2013

Notwithstanding anything contained in this Chapter, the Central Government or 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, the Central Government or 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.

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)

(2) Section 200 of the Companies Act 2013 was notified by MCA Notification S.O. 902(E) dated 26th March 2014 (w.e.f. 1st April, 2014)

(3) Relevant rule(s) of the Companies (Appointment and Remuneration of Managerial PersonnelRules, 2014 (w.e.f. 1st April, 2014)
  • Rule 6 - Applications to the Central Government
[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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