NO.2/29/98-CL.V

GOVERNMENT OF INDIA

MINISTRY OF LAW. JUSTICE & COMPANY AFFAIRS

DEPARTMENT OF COMPANY AFFAIRS

5TH FLOOR.'A' WING, SHASTRI BHAWAN

DR. RAJENDRA PRASAD ROAD, NEW DELHI- 110001

Dated ...5.4.1999

PRESS NOTE No. 3/99

Sub: "Reports of Board of Directors of Companies - Statement showing details of employees drawing remuneration beyond the prescribed limits

.

In,terms of Section 217(2A) of the Companies Act, .1956 every Report of the Board of Directors which is to be attached to the Balance Sheet of Companies should contain a statement showing details of employees who had been paid remuneration beyond the prescribed limit.These limits have been prescribed under separate rules, namely, the Companies (Particulars of Employees) Rules, 1975.

  1. These limits have now been revised by a Notification issued. by the Central Government on 12.3.1999 vide Notification GSR-204(E) dated 12.3.1999.

3. . The earlier limits had been fixed in 1994. The old limits and the new limits are given below:

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S.No.

In employment

Remuneration drawn

 

 

Old Limits

(fixed in Oct, 1994)

New Limits

(fixed in March 1999)

1.

For part of the year

Rs.25,000/- per month

Rs.50,000/- per month

2.

For the whole year

Rs.3 lakhs per annum

Rs.6 lakhs per annum

 

 4. The aforesaid revision will apply in respect of Directors' Report annexed to those Balance Sheets the financial year in respect of which has closed on or after 12.3.1999.

.

R.D. Joshi

Joint Secretary to the Govt. of India

Endt.No. 2/29/98-CL.V dated 5.4.99

Copy forwarded to Shri S.P.Das, DPIO, Press information Bureau, Shastri Bhavan, New Delhi with the request that the Press Note may kindly be given wide publicity.

R.D. Joshi

Joint Secretary to the Govt. of India

Ph: 338 1226

Endt No. 2/29/98-CL-V dated 5.4.99