Section 387 – The Companies Act,1956

The Companies Act, 1956

387. Remuneration of manager.

The manager of a company may, subject to the provisions of section 198, receive remuneration either by way of a monthly payment, or by way of a specific percentage, 1[***] of the “net profits” of the company calculated in the manner laid down in sections 349 2[and 350], or partly by the one way and partly by the other:

3[Provided that except with the approval of the Central Government such remuneration shall not exceed in the aggregate five per cent of the net profits.]

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1. The words “not exceeding five” omitted by Act 65 of 1960, sec. 147 (w.e.f. 28-12-1960).

2. Subs. by Act 53 of 2000, sec. 172, for “, 350 and 351” (w.e.f. 13-12-2000).

3. Ins. by Act 65 of 1960, sec. 147 (w.e.f. 28-12-1960).

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The Companies Act, 1956

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