Companies who are paying Rs5 lakh and above per month to an employee would have to mention the employee’s name in the director's report, says Ministry of Corporate Affairs
The Ministry of Corporate Affairs (MCA) has increased the limits for the purpose of disclosure of particulars of employees in the director's report to Rs60 lakh per year, or Rs5 lakh per month, from Rs24 lakh per annum, or Rs2 lakh per month.
The MCA, in a notification issued on 31 March 2011, said this would also cover government companies. The companies would have to provide statement showing the name of every specified employee in their Board report, if the employee has earned more than Rs60 lakh through the year, or Rs5 lakh or more per month, if he was employed for less than 12 months of the financial year.
The ministry, under a notification issued on 6th April, also increased the payment remuneration limit to relatives or partners of the directors of the company given under Rule 3 of the Director's Relative (Office or Place of Profit) Rules 2003, to Rs2.5 lakh per month from Rs50,000 per month. However, the companies would have to obtain prior permission through a special resolution and approval from the Union government.
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