Amendment to the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

The Ministry of Corporate Affairs (‘MCA’) has, by way of a notification dated June 30, 2016, amended the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Pursuant to the amendment, the erstwhile thresholds applicable to the statement on employees prescribed for inclusion in the report by the board of directors of listed companies and such statement have now been revised to include, inter alia: (i) the top 10 employees in terms of remuneration; (ii) any employee who has received Rs 10,200,000 (approximately USD 150,000) in the preceding financial year (the erstwhile threshold in this regard was Rs 6,000,000 (approximately USD 90,000)); and (iii) any employee who was employed for a part of the preceding financial year and has received remuneration at any time, at a rate which, in aggregate was more than Rs 850,000 per month (approximately USD 13,000) (the erstwhile threshold in this regard was Rs 500,000 (approximately USD 7,000)).

Published In:Inter Alia - Quarterly Edition - October 2016 [ English Chinese japanese ]
Date: October 1, 2016