Specification of certain conditions under which no approval of Central Government would be required for managerial remuneration under section 309(4) in its application to Nidhis and mutual benefit societies - GSR 84(E), - Companies Law

NOTIFICATION NO. GSR 84(E), DATED 23-2-1998, ISSUED BY THE DEPARTMENT OF COMPANY AFFAIRS Subject:- Specification of certain conditions under which no approval of Central Government would be required for managerial remuneration under section 309(4) in its application to Nidhis and mutual benefit societies G.S.R. 84(E).- In exercise of the powers conferred by section 620A of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Commerce and Industry, Department of Company Law Administration number GSR 978, dated the 28th May, 1963, namely : In Schedule III to the said Notification in column (2), below the entry occurring against the entry "section 309(4)" mentioned in column (1), the following shall be inserted, namely : " Provided that no approval of the Central Government shall be required where, (a) a nidhi or a mutual benefit society does not have a managing director or a whole-time director or a manager; (b) the remuneration payable during a financial year to all the directors of the Nidhi or the mutual benefit society, as the case may be, does not exceed ten per cent of the net profits of such nidhi or mutual benefit society or five lakh rupees, whichever is less; and (c) a remuneration payable under clause (b) of this proviso is approved by a special resolution passed in this behalf by nidhi or mutual benefit society, as the case may be."