C.V.O. Chartered & Cost Accountants' Association

Legal Updates

Corporate Laws update

Compiled by : Shri Rajesh P. Chheda (C.A.)

1. Companies (Acceptance of Deposits) Amendment Rules, 2002

[Issued by the Department of Company affairs]

In exercise of the powers conferred by section 58A read with section 642 of the Companies Act, 1956, the Central Government, in consultation with the Reserve Bank of India, has reduced the rate of Interest on deposits from existing 14% to 12.50% vide Notification No. G.S.R. 77(E), dated 4.2.2002

2. Amendment of Schedule XIII of Companies Act, 1956

[Issued by Department of Company Affairs vide F. No. 5/48/2001-Cl(v)]

G.S.R. 36(E).- In exercise of the powers conferred by sub-section (1) of section 641 of the Companies Act, 1956, the Central Government has made the following amendments in Schedule XIII to the said Act, namely:-

In the said Schedule, in Part II, in section II, -

Slabs of the effective capital of the Company has been re-arranged by inserting a new slab as under:

(a) for paragraph 1, the following shall be substituted, namely:-

"1. Notwithstanding anything contained in this Part, where in any financial year during the currency of tenure of the managerial person, a company has no profits or its profits are inadequate, it may pay remuneration to a managerial person by way of salary dearness allowance, perquisites and any other allowances,

(A) not exceeding the ceiling that of Rs. 24,00,000 per annum or Rs. 2,00,000 per month calculated on the following scale:-

 

	Where the effective capital of Company is	Monthly remunerationpayable shall not exceed (Rupees)
i.	Less than rupees 1 crore	75,000
ii.	rupees 1 crore or more than less than rupees 5 crores	1,00,000
iii.	rupees 5 crores or more than rupees 25 crores	1,25,000
iv.	rupees 25 crores or more but less than rupees 50 crores	1,50,000
v.	rupees 50 crores or more but less than rupees 100 cores
vi.	rupees 100 crores or more	2,00,000

Provided that the ceiling limits specified under this sub-paragraph shall apply, if-

(i) payment of remuneration is approved by the a resolution passed by the Remuneration Committee;

(ii) the company has not made any default in repayment of any of its debts (including public deposits) or debentures or interest payable thereon for a continuous period of thirty days in the preceding financial year before the date of appointment of such managerial person.

 

C.V.O. CA's News & Views

Vol.5 No. 4 mar. - Apr. 2002