The Companies Act, 1956
199. Calculation of commission, etc., in certain cases.
(1) Where any commission or other remuneration payable to any officer or employee of a company (not being a director 1[***] or a manager) is fixed at a percentage of, or is otherwise based on, the net profits of the company, such profits shall be calculated in the manner set out in sections 349 2[and 350].
(2) Any provision in force at the commencement of this Act for the payment of any commission or other remuneration in any manner based on the net profits of a company, shall continue to be in force for a period of one year from such commencement; and thereafter shall become subject to the provisions of sub-section (1).
1. The words “, the managing agent, secretaries and treasurers” omitted by Act 53 of 2000, sec. 86 (w.e.f. 13-12-2000).
2. Subs. by Act 53 of 2000, sec. 86, for “, 350 and 351” (w.e.f. 13-12-2000).