NON-ACADEMIC ICAI UPDATE (NOT RELEVANT FOR EXAMS BUT FOR GENERAL AWARENESS)
Hello Everyone,
Please find text of the Announcement regarding Commencement notification of provisions of Companies (Amendment) Act, 2020 relating to Remuneration of Non-Executive Director notification below –
Announcement regarding Commencement notification of provisions of Companies (Amendment) Act, 2020 relating to Remuneration of Non-Executive Director
Corporate Laws & Corporate Governance Committee The Institute of Chartered Accountants of India
19th March, 2021
ANNOUNCEMENT
Sub: Commencement notification of provisions of Companies (Amendment) Act, 2020 relating to Remuneration of Non-Executive Director w.e.f. 18th March, 2021
This is to inform you that the Central Government has appointed the 18th March, 2021 as the date on which the following provisions of the Companies (Amendment) Act, 2020 shall come into force namely:
| SNo. | Section of the Companies (Amendment) Act,2020 | Section of the Companies Act, 2013 | Particulars |
| 1 | Section 32 | Insertion of proviso to Section 149(9) | Remuneration of Independent Director |
| 2 | Section 40 | Section 197(3) | Overall Maximum Managerial Remuneration and Managerial Remuneration in Case of Absence or Inadequacy of Profits |
Accordingly, after amendment, non-executive directors including independent directors may receive remuneration, in case of absence or inadequacy of profits, in accordance with Schedule V of the Companies Act, 2013.
Notification is available at the link- http://www.mca.gov.in/Ministry/pdf/CommencementNotification_18032021.pdf
Members may note the above.
Sincerely Yours,
Chairman and Vice Chairman
Corporate Laws & Corporate Governance Committee The Institute of Chartered Accountants of India
Official Link of Announcement regarding Commencement notification of provisions of Companies (Amendment) Act, 2020 relating to Remuneration of Non-Executive Director notification can be accessed from below –
https://resource.cdn.icai.org/63823clcgc51351b.pdf
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Jai Hind, Vande Mataram
Team CA Study
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