Companies free to decide managerial salaries: MCA
New Delhi, In a bid to further improve Ease of Doing Business (EoDB) in the country, the Ministry of Corporate Affairs (MCA) on Thursday said companies will no longer require government approval to decide salaries of their managerial staff.
 
"From September 12, 2018 approval of the Central Government shall no longer be required for the payment of remuneration to managerial personnel (in excess of 11 per cent of the net profit of a company)," the Ministry said in a statement.
 
In a move designed to empower common shareholders, the remuneration in excess of individual limits will now be approved by shareholders through a special resolution.
 
"... the government has notified that remuneration in excess of individual limits laid down for Executive and non-Executive Directors shall henceforth be approved by shareholders through a Special Resolution," the statement said.
 
The MCA notified commencement of changes to the Companies Act, 2013 along with the rules as part of its policy of 'Minimum Government-Maximum Governance'. The aim is to provide ease of doing business to the law-abiding corporates of the country.
 
In case a company has defaulted in payment of dues to a bank, financial institution or non-convertible debenture holder, a prior approval would be required from the entity to which the company has defaulted before getting the shareholders' approval.
 
The MCA said relevant changes have been made to Schedule-V of the Companies Act, 2013 so that companies can follow provisions of Schedule-V and need not take central government's approval when companies are in loss or have inadequate profits.
 
"With the issue of the notification all pending applications submitted to the Ministry for approval of proposals for payment of managerial remuneration in excess of the limits laid down, would automatically abate and companies are free to obtain requisite approvals for those proposals, from the shareholders within one year," it added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Base effect dents August passenger vehicles' sale
Unfavourable base effect, along with high fuel and interest costs, dented the monthly sales of domestic passenger vehicles in August 2018, data showed on Tuesday.
 
According to the data furnished by the Society of Indian Automobile Manufacturers (SIAM), sales of passenger vehicles -- cars, utility vehicles and vans -- slipped by 2.46 per cent to 2,87,186 units from 2,94,416 units sold in the corresponding period of last year.
 
The off-take of the sub-segment such as passenger cars dipped by 1.03 per cent during the month under review to 1,96,847 units.
 
Similarly, utility vehicles' sales declined in August. The off-take was lower by 7.11 per cent during the month at 73,073 units.
 
However, sales of vans increased by 2.41 per cent to 17,266 units.
 
In contrast to passenger vehicles sales the overall commercial vehicles off-take zoomed by 29.56 per cent to 84,668 units in August. The segment is a key indicator of economic activity.
 
The data pointed out that three-wheelers' sales accelerated by 22.83 per cent to 63,199 units during the month.
 
In addition, overall sales of two-wheelers, which include scooters, motorcycles and mopeds, climbed by 2.91 per cent to 1,946,811 units.
 
As per the data, total sales of the Indian automobile sector rose by 3.43 per cent during August 2018 to 2,381,931 units across segments and categories.
 
The overall exports of vehicles across categories also edged higher by 23.70 per cent to 411,357 units.
 
Sridhar V, Partner, Grant Thornton India said: "Commercial truck segment has been performing at a high torque during this month despite the change in the axles policy kicking in mid-July and I would presume it is not only because of the shape of the economy but also a reflection of the infra build."
 
"This segment has registered the highest yet for FY 19 and best is probably yet to come. Passenger vehicle segment had a mixed performance; while a few OEMs have shown growth, the largest players have shown a negative growth possibly due a high base in previous year, high interest rates and flood situations, which have had its dampening effect."
 
Anupama Arora, Vice President and Sector Head, Corporate Sector ratings, ICRA said: "One-off events in select geographies as well as delayed festive season resulted in muted two wheeler volumes in August 2018...."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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COMMENTS

Veeresh Malik

1 week ago

Pretty much every automobile dealer is sitting on car and two-wheeler stocks of anywhere between 4 and 6 months, barring a handful of model variants in the below 4-metre SUV category, and the discounts as well as desperation are beginning to show.
Anecdotal - a friend was going to buy a hot in demand car model variant at which point he got in touch with me for pre-delivery and I asked him to get the VIN number from the dealer. After much trouble and time, he finally got a VIN number, to discover that the specific vehicle had been manufactured 5 months ago.

At one time, older stale stock of new vehicles could be palmed off on rural and semi-urban markets but that's not possible any more either.

Dealers hope that the festival season will notch up sales but the increase in price of fuel, the huge increase in associated costs whilst buying a new vehicle like 3/5 years insurance up front and different logistics handling charges and municipal and state level charges have made on road price almost 40% more than ex-showroom sticker price.

A huge increase in the number of good condition 2nd hand vehicles, better public transport in some cities, and general toning down of car as aspirational are more reasons to think that the August numbers are not just a momentary lapse. The September 2018 numbers appear to be worse already.

ArcelorMittal commits to pay dues, files revised bid for Essar Steel
Emphasising its commitment to clear its dues on Uttam Galva and KSS Petron, ArcelorMittal on Monday said it has submitted a substantially higher bid to the Committee of Creditors (CoC) of insolvent Essar Steel.
 
Last Friday, National Company Law Appellate Tribunal (NCLAT) had ruled that ArcelorMittal must pay its dues by Tuesday to enable consideration of its bid along with resolution plans of other contenders, Numetal and Vedanta Resources.
 
"ArcelorMittal confirms that it submitted today (Monday) a revised proposal to Essar Steel India Limited's (ESIL) Committee of Creditors for the acquisition of ESIL. The financial terms of the proposal are confidential, but represent a material increase on our previous offer," ArcelorMittal said in a release.
 
The revised bid by the world's largest steelmaker is believed to be Rs 42,000 crore compared with Rs 37,000-crore bid submitted in the second round of bidding by Numetal, a consortium led by Russia's VTB Bank.
 
"The revised offer, which includes a commitment to pay the entire amount due to the financial creditors of Uttam Galva and KSS Petron, therefore represents unprecedented value to all creditors concerned," the Lakshmi Mittal company said.
 
The commitment by ArcelorMittal to pay the outstanding dues of Rs 7,000 crore on Uttam Galva and KSS Petron is learnt to be separate from its bid of Rs 42,000 crore. 
 
"Through the revised offer ArcelorMittal demonstrates its serious commitment to India, creditor banks and all ESIL's stakeholders," it added.
 
While ArcelorMittal got conditional approval last week, Numetal's bid filed in the second round on March 29 was found eligible as by then it had restructured its shareholding composition by removing the stake of Essar Steel promoter's son.
 
The first bid of both Numetal and ArcelorMittal were rejected by the CoC, the lenders of Essar Steel, as they violated Section 29A of the Insolvency and Bankruptcy Code (IBC), which disqualifies a promoter of NPA from submitting a resolution plan. 
 
ArcelorMittal was asked to clear its dues of about Rs 7,000 crore related to Uttam Galva and KSS Petron, of which it was a promoter when these turned non-performing assets (NPA), in three working days that end on September 11.
 
Though ArcelorMittal is yet to actually transfer the dues to the creditors of Uttam Galva and KSS Petron as required by the bankruptcy court, it is learnt that it has initiated the process with the creditors and sought instructions for doing the same.
 
The NCLAT, on Friday, had allowed the CoC to deduct the litigation period between April 26 and September 7 from the resolution period that gives 270 days to resolve a case after which the company is considered for liquidation.
 
In its judgment, the bankruptcy court had also allowed the CoC to negotiate with the bidders to get the best value for the stressed asset. The financial creditors claim on bankrupt Essar Steel is to the tune of Rs 50,000 crore.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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