Section 199 - Calculation of commission, etc., in certain cases. - Companies Act, 1956

Calculation of commission, etc., in certain cases. 199. (1) Where any commission or other remuneration payable to any officer or employee of a company (not being a director [1] [* * *] or a manager) is fixed at a percentage of, or is otherwise based on, the net profits of the company, such profits shall be calculated in the manner set out in sections 349 [2] [and 350]. (2) Any provision in force at the commencement of this Act for the payment of any commission or other remuneration in any manner based on the net profits of a company, shall continue to be in force for a period of one-year from such commence ment; and thereafter shall become subject to the provisions of sub-section (1). ----------------------------------- Notes:- [1] Omitted by the Companies (Amendment) Act, 2000 as provisions relating to managing agents, secretaries and treasures had become redundant after abolition of system by Act 17 of 1969. [2] Substituted for ", 350 and 351" by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000.