No restrictions on remuneration of executives with 0.5 % stake in the company - August 23, 2012

If Companies were making losses or low profits that fell under the purview of Company’s Act, they could not provide remuneration exceeding Rs. 4 lakh/month nor could they remunerate those related to directors and promoters without government’s approval.

If Companies were making losses or low profits that fell under the purview of Company’s Act, they could not provide remuneration exceeding Rs. 4 lakh/month nor could they remunerate those related to directors and promoters without government’s approval. However the Ministry of Corporate Affairs has specified that if the employee holds 0.5% of the stake in the company under employees’ share allottment schemes such as ESOP, this restriction would no longer hold.

Source: www.financialexpress.com, August 23, 2012. “No curb on exec pay on 0.5% ESOP stake”

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