Following are the major amendments mentioned in the Notification:
- Remuneration payable by companies having no profit or inadequate profit without Central Government approval.
- 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 limit given below
|Where the effective capital is||Limit of yearly remuneration payable shall not exceed (Rupees)|
|(i) Negative or less than 5 crores||60 lakhs|
|(ii) 5 crores and above but less than 100 crores||84 lakhs|
|iii) 100 crores and above but less than 250||120 lakhs|
|(iv) 250 crores and above||120 lakhs plus 0.01% of the effective capital in excess of Rs. 250 crores|
**Provided that the above limits shall be doubled if the resolution passed by the shareholders is a special resolution.
** The above section is applicable only on Public companies. There is no such restrictions for private companies.