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  • Writer's pictureShruti Sharma

Section 200- Central Government or company to fix a limit with regard to remuneration

Updated: Oct 7, 2022




Section 200 of the Companies Act of 2013 allows the Central Government or companies to set a remuneration limit. The provisions of this Section are adequate from 1-April-2014. Central Government is practically removed from this Section.

A company may fix the remuneration within limits provided in this Act, at such amount or proportion or percentage of the company's profits as it deems reasonable, and in doing so, the company shall have regard to—

a) the company's financial position;

b) the remuneration or commission drew by the individual concerned in any other capacity;

c) the remuneration or commission drew by him from any other company;

d) the individual's professional qualifications and experience; and

e) such other matters as may be prescribed.

This section is to be read with Rule 6 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, which states some Parameters for Consideration of Remuneration.

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