Question

Total managerial remuneration in a public company cannot exceed __________ .

• A. 10% of the net profits
• B. 11% of the net profits
• C. 10% of the net worth
• D. 11% of the net worth

Answer 1

The correct option is B 11% of the net profits

The total managerial remuneration payable by a public company, to its directors, including managing director and whole-time director, and its manager in respect of any financial year shall not exceed eleven per cent. of the net profits of that company for that financial year computed except that the remuneration of the directors shall not be deducted from the gross profits.