Remuneration Limit Increased U/S 314 of Companies Act

The Central Government vide its powers confirmed under section 642 of the Companies Act , 1956 has raised the total monthly remuneration for the purpose of Clause (b) of sub section (1) of section 314, Rs.10,000 limit u/s 314(1)(b) of Companies Act raised to Rs.50,000 & Rs.20,000 limit u/s 314(1B)) raised to Rs.2,50,000.
Section 314 of The Companies Act, 1956 states that a Director etc., is not to hold office or place of profit except with the consent of the company accorded by a special resolution and at remuneration as may be prescribed by the Central Government.


Below is the Notification:
[TO BE PUBLISHED IN THE GAZETTE OF INDIA PART II, SECTION 3,
SUB SECTION (i), EXTRAORDINARY]
GOVERNMENT OF INDIA
Ministry of Corporate Affairs
Notification
New Delhi the 07.07.2011


G.S.R. ……… (E). – In exercise of the powers conferred by clauses (a) and (b)
of sub-section (1) of section 642 of the Companies Act, 1956 (1 of 1956) and
all other powers hereunto enabling the Central Government hereby makes the
following rules, further to amend the Companies (Central Government’s)
General Rules and Forms, 1956 namely:-


1. Short title and commencement
(1) These rules may be called the Companies (Central Government’s)
General Rules and Forms (Amendment) Rules, 2011.
(2) They shall come into force with effect from the date of publication
in the official Gazette.
2. The existing Rule 10C shall be substituted by the following Rule 10C:
[Rule 10C. (1) The total monthly remuneration for the purpose of
clause (b) of sub-section (1) of section 314, shall not be less than rupees
fifty thousand.
(2) The total monthly remuneration, for the purpose of sub-section (1B)
of section 314, shall not be less than rupees two lakhs and fifty
thousand.]
[F No 17/174/2011-CL.V]
J.N. Tikku,
Joint Director
Note- The Principal notification was published vide number G.S.R. 432 dated 18th January 1956 and last amended vide G.S.R. 408 (E) dated the 26th May 2011.
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