Section 637aa- The Companies Act,1956

The Companies Act, 1956

637AA. Power of Central Government to fix a Limit with regard to remuneration.

1[637AA. Power of Central Government to fix a Limit with regard to remuneration.

Notwithstanding anything contained in section 198, section 309 or section 637A, the Central Government may, while according, its approval under section 269, to any appointment or to any remuneration under section 309, section 310, section 311 or section 387, fix the remuneration of the person so appointed or the remuneration, as the case may be, within the limits specified in this Act, at such amount or percentage of profits of the company, as it may deem fit and while fixing the remuneration, the Central Government shall have regard to –

    (a) The financial position of the company;

    (b) The remuneration or commission drawn by the individual concerned in any other capacity, including his capacity as a sole selling agent;

    (c) The remuneration or commission drawn by him from any other company;

    (d) Professional qualifications and experience of the individual concerned;

    (e) Public policy relating to the removal of disparities in income.]

1 Inserted by Act No. 41 of 1974, w.e.f. 1st. February, 1975.

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