WebCompanies licensed under Section 8 of the Companies Act, 2013 or corresponding provisions of any previous enactment thereof are prohibited by their constitution from paying any Dividend to its ... 1.2.1 In a year in which the profits are inadequate or there are no profits, the company may declare Dividend out of Free Reserves subject to the ... WebNov 6, 2014 · The fact of Inadequacy of profit should be realized by the company concerned only after having arrived at the profit as per section 198 of companies Act 2013 that would not sufficient to pay managerial remuneration as per the agreed terms and conditions …
RECENT AMENDMENTS IN COMPANIES ACT, 2013
WebSep 26, 2012 · You can give maximum 11% of net profit as remuneration to all manager/md/wtd etc. It seems 5000/- profit is inadequate as no MD (all of them together) will like to have Rs 550/- as their remuneration for whole hear. Sch XIII provides, you can give upto 4 lakh Rs p.m. as remuneration to each managerial personnel in case of inadequate … WebApr 11, 2024 · Where in any financial year during the currency of tenure of a managerial person, a company has no profits or its profits are inadequate, it may, without Central Government approval, pay remuneration to the managerial person not exceeding the higher of the limits under (A) and (B) given below:— ( A ): duties of personal secretary
Dividends - Interim and Final Provisions of Companies Act
WebSep 7, 2024 · “Sec 197 (3) – Notwithstanding anything contained in sub-Sections (1) and (2), but subject to the provisions of Schedule V, if, in any financial year, a company has no profits or its profits are inadequate, the company shall not pay to its directors, including any managing or whole-time director or manager, by way of remuneration any sum … WebMay 10, 2013 · In case of inadequate or no profit, a company may pay to a managerial person without central government approval higher of the following two options (A or B): As per following table with approval of company by ordinary resolution in general meeting or double of these limit with approval by special resolution: Effective Capital (EC) WebMay 26, 2024 · Adhering to a few cases where a company has inadequate profits/no profits in any financial year, no total sum shall be payable by way of remuneration, excluding if … in a war 意味