Companies Act

Limit of remuneration payable to managerial person/other director in case of loss . Amendment to Schedule V

Revised Limit of remuneration payable to managerial person / other director in case of loss . Amendment to Schedule V of the Companies Act 2013

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the18th March, 2021

S.O. 1256(E).—In exercise of the powers conferred bysub-sections (1) and (2) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following amendments to Schedule V of the said Act, namely:—

2. In Schedule V of the Companies Act, 2013, in PART II, under the heading ―REMUNERATION”.-

(a) in Section I, in the first para, after the words ―managerial person or persons”, the words ―or other director or directors” shall be inserted;

(b) in Section II,–

(i) after the words ―managerial person”, wherever occurred, the words ―or other director” shall be inserted;

(ii) for Table (A):, the following shall be substituted, namely.-

(1)		(2)	(3)
SL No.	Where the effective capital (in rupees) is	Limit of yearly remuneration payable shall not exceed (in Rupess) 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 Rs. 250 crores	24 Lakhs plus 0.01% of the effective capital in excess of Rs.250 crores.”

(i) after the words ―managerial person‖, wherever occurred, except in clause (i) of the proviso, the words ―or other director” shall be inserted;

(ii) after the words ―managerial persons”, wherever occurred, the words ―or other directors” shall be inserted;

(iii) 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.”

[F.No. 1/5/2013-CL-V]

K.V.R.MURTY, Jt. Secy.Note :

The Schedule V of the Companies Act, 2013 came into force with effect from the 1st April,2014 and was last amended vide notification number S.O. 4822(E) dated 12.09.2018 published in the Gazette of India

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