Compensation for loss of office of MD, WTD or Manager (in brief) 1- A company may make compensation to MD, WTD or Manager in case of loss of office by way of retirement etc. 2- The compensation shall be provided only MD, WTD, or Manager. 3- The compensation shall not be provided in following cases:- a) - where the director resign his office due to amalgamation or reconstruction of the company etc. b)- where the office of director vacate due to section 167 of the act c)- due to winding up and winding up was due to negligence or default of the director d)- due to breach of trust. e)- where the director has instigated or taken part directly or indirectly in bringing about, 4-the compensation as provided to director shall not exceed his remuneration as per provision of 202 (3) of the act. 5-this section does not prohibit to make any payment which is related to any services which has been rendered by the directors in any other capacity . (Clause 202 of new companies Bill 2012) Note: - all information (sentences, phrases and words) which is being provided or provided here either in past or future, is just for the purpose of “KNOWLEDGE and AWARENESS” not any other purpose
Posted on: Wed, 03 Jul 2013 23:46:18 +0000
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