Amended and updated notes on section 200 of Companies Act 2013. Detail discussion on provisions and rules related to Central Government or company to fix limit with regard to remuneration.
Chapter XIII (Sections 196–205) of the Companies Act, 2013 (CA 2013) deals with the provisions related to appointment and remuneration of managerial personal. Section 200 of CA 2013 provides for Central Government or company to fix limit with regard to remuneration.
Recently, we have discussed in detail section 199 (Recovery of remuneration in certain cases) of CA 2013. Today, we learn the provisions of section 200 of Companies Act 2013.
The provisions of section 200 are effective from 1-April-2014. You may refer Notification No. S.O. 902(E) issued dated 27-03-2014. In this article, you will learn detail of the provisions of section 200 of the Companies Act 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XIII |
| Chapter Name | Appointment and Remuneration of Managerial Personal |
| Section No. | 200 |
| Section Name | Central Government or company to fix limit with regard to remuneration |
| Monthly Updated Edition | Company Law PDF |
Section 200 of Companies Act 2013: Central Government or company to fix limit with regard to remuneration
Section 200 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014.
Notwithstanding anything contained in this Chapter 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 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.