Query- place of Profit Rules...

[satya purohit]

Dear Friends,

 

the said Rules mention the monthly remuneration limit of Rs. 2,50,000. now, in my case, if the co, is paying bonus & other perks at the end of yr., do i add that to monthly remuneration for the purpose of these Rules?

 

actually,  pt. 4 (2) says.............
 
"The monetary value of all allowances and perquisites and of total remuneration package (monthly/annually) proposed to be paid to the appointee and details of the services that will be rendered by him to the company "--

but, i came across foll. case

 

The Delhi High Court in Ravinder Kumar Sangal v Auto lamps ltd. (1984)55 Comp Cas 742(Del). Held that the word "monthly" necessarily connotes anything taking place once a month, relating to a month, payable every month, based on a month, having a duration of one month, occurring, appearing or being done or acted upon every month or once a month. No other implication has been stressed. Considered in this context, the payment of bonus, reimbursement in lieu of privilege leave not availed, employer's contribution to provident fund, reimbursement of medical expenses, etc., cannot be treated as events of monthly regularity of occurrence. They are dependent upon certain events happening during the course of the entire year, and as and when they take place.

 

if any body has come across same issue, pls, advise

 

Thanks and Regards,
Sd/-
Satya Puroht
For, S P & Associates

25, Tamba Kanta
Mumbai-400003
cell: 9833689384

[Heeravathi Bhat]

Satya,

 

In one of my client case also - bonus is paid on the performance of the director which exceeds the stipulated limit.   This is a private limited company.   Do we have to take approval of shareholders in this case or mere board resolution is good enough.

 

Please share your views.

Heera

--
Heeravathi
Company Secretary
No.8 Samvrudhi, Chinnamma Layout
Panchayati Office Compound
Cholanagar, Bangalore 560 032
Contact No. : 94480 79501