The Ministry of Corporate Affairs (MCA) notifies amendments to Schedule V of the Companies Act, 2013 vide Notification dated 18.03.2021[1].
The amendments to Schedule V of the Act deals with respect to Director’s remuneration in the following manner:
- in Section I, in the first para, after the words ― “managerial person or persons”, the words ― “or other director or directors” shall be inserted;
- in Section II, –
- after the words ― “managerial person”, wherever occurred, the words ― “or other director” shall be inserted;
- for Table (A): the following shall be substituted, namely. –
| Sl. No. | Where the effective capital (in rupees) is | Limit of yearly remuneration payable shall not exceed (in Rupees) in case of a managerial person | Limit of yearly remuneration payable shall not exceed (in Rupees) in case of other director |
| (i) | Negative or less than 5 crores. | 60 lakhs | 12 Lakhs |
| (ii) | 5 crores and above but less than 100 crores. | 84 lakhs | 17 Lakhs |
| (iii) | 100 crores and above but less than 250 crores. | 120 lakhs | 24 Lakhs |
| (iv) | 250 crores and above. | 120 lakhs plus 0.01% of the effective capital in excess of ₹ 250 crores: | 24 Lakhs plus 0.01% of the effective capital in excess of ₹ 250 crores: |
- in Section III, –
- after the words ― “managerial person”, wherever occurred, except in clause (i) of the proviso, the words ― “or other director” shall be inserted;
- after the words ― “managerial persons”, wherever occurred, the words ― “or other directors” shall be inserted;
- following explanation shall be inserted at the end, namely: –
“Explanation. – For the purposes of Section I, Section II and Section III, the term ― “or other director” shall mean a non-executive director or an independent director.
*Tanvi Singh, Editorial Assistant has put this story together.
[1] http://www.mca.gov.in/Ministry/pdf/AmendmentNotification_19032021.pdf
