Question

According to the provisions of the 'Indian Companies Act, 2013' the limit of yearly remuneration payable to a managerial person of a company having the effective capital of Rs 25 crores, shall not exceed _____________.

• A. Rs 84 lakhs
• B. Rs 60 lakhs
• C. Rs 42 lakhs
• D. Rs 30 lakhs

Answer 1

Answer: (A)

Rs 84 lakhs

There are different monetary limits of yearly remuneration to a managerial person of a company with different capitals. A Public Company can pay remuneration to its managers which shall not exceed 11% of the net profit of the compny, as laid down in Section 198 of the Act. The limit of yearly remuneration to a managerial person of a company having the effective capital of 25 crores, should not exceed 84 lakhs, as mentioned in Schedule V, Part II of the Indian Companies Act 2013.