Amended and updated notes on section 199 of Companies Act 2013. Detail discussion on provisions and rules related to recovery of remuneration in certain cases.
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 199 of CA 2013 provides for recovery of remuneration in certain cases.
Recently, we have discussed in detail section 198 (Calculation of profits) of CA 2013. Today, we learn the provisions of section 199 of Companies Act 2013.
The provisions of section 199 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 199 of the Companies Act 2013.
| 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. | 199 |
| Section Name | Recovery of remuneration in certain cases |
| Monthly Updated Edition | Company Law PDF |
Section 199 of Companies Act 2013: Recovery of remuneration in certain cases
Section 199 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014.
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.