MCA Notifies “Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016”

MCA Notification on “Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016”

The MCA vide Notification dt 30th June 2016 has notified the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016, as under:

MCA Notification dt 30th June 2016

In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the companies Act,2013 (18 of 2013), the central Government hereby makes the following rules further to amend the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, namely:-

l. (l) These rules may be called the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016′ (2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Companies (Appointment and Remuneration of Managerial Personnel) Rules’ 2014′ (hereinafter referred to as the principal rules),-

(i) in rule 3, the expression “Chief Executive Officer (CEO), Company Secretary and Chief Financial Officer (CFO)” shall be omitted.

3. in rule 5 of the principal rules,-

(a) in sub-rule (l), “clauses (v), (vi), (vii) and (ix) to (xi)” shall be omitted’

(b) in sub-rule (2),-

(a) for the words ” the name of every employee of the company, who-“‘ the words .. the names of the top ten employees in terms of remuneration drawn and the name of every employee, who-” shall be substituted;

(b) in sub-clause (i) for the words “sixty lakh rupees”, the words “one crore and two lakh rupees” shall be substituted;

(c) in sub-clause (ii) for the words “five lakh rupees per month”‘ the words ” eight lakh and fifty thousand rupees per month” shall be substituted;

4. For Form MR-l of the principal rules, the following form shall be substituted, namely,

Form No. MR 1

Return of a Appointment of Managerial Personnel

[Pursuant to Section 196 read with Section 197 and Schedule V of the Companies Act and pursuant to Rule 3 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014]

…contd….

MCA Notification dt 30th June 2016 Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016

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