valid as on 20/10/2019

Section 200. Central Government or company to fix limit with regard to remuneration
Effective from 01-04-2014

otwithstanding anything contained in this Chapter,  a company may, while according its approval under section 196, to any appointment or to any under section 197 in respect of cases where the company has inadequate or no profits, fix the remuneration within the limits specified in this Act, at such amount or percentage of profits of the company, as it may deem fit and while fixing the remuneration,  the company shall have regard to—(a) the financial position of the company;

(b) the remuneration or commission drawn by the individual concerned in any other capacity;

(c) the remuneration or commission drawn by him from any other company;

(d) professional qualifications and experience of the individual concerned;

(e) such other matters

Omitted vide Companies (Amendment) Act, 2017 dated 03.01.2018 effective from 12.09.2018. To view the notification,Click Here
2(78) Remuneration means any money or its equivalent given or passed to any person for services rendered by him and includes perquisites as defined under the Income-tax Act, 1961 (43 of 1961)
Omitted vide Companies (Amendment) Act, 2017 dated 03.01.2018 effective from 12.09.2018. TTo view the notification,Click Here
Refer rule 6 of the  Companies (Appointment and Remuneration of Managerial Personnel) Rules,2014. To view the rule,Click Here

13.1.6-Companies (Appointment and Remuneration of Managerial Personnel) Rules,2014

6. Applications to the Central Government.- 

The or the company shall have regard to the following matters, namely:-

(1) the Financial and operating performance of the company during the three preceding financial years.

(2) the relationship between remuneration and performance.

(3) the principle of proportionality of remuneration within the company, ideally by a rating methodology which compares the remuneration of directors to that of other directors on the board who receives remuneration and employees or executives of the company.

(4) whether remuneration policy for directors differs from remuneration policy for other employees and if so, an explanation for the difference.

(5) the securities held by the director, including options and details of the shares pledged as at the end of the preceding financial year.

Substituted vide Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 20 18 dated 12th September,2018. To view the notification Click Here
 Omitted vide Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 20 18 dated 12th September,2018. To view the notification Click Here

Commencement Notification dated 12th September 2018


Enforcement Notification S.O. 902(E) dated 26/03/2014


The Companies (Amendment) Act, 2017 (Effective from 03.01.2018)


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