No Profit Companies Can Hire High Cost Managers
At present, listed companies and their subsidiaries companies, which are not having profits or having inadequate profits, have to seek approval of the Government for payment of remunerations exceeding Rs. 4 lakh p.m. even to professional managerial person, who has no interest in the capital or any relation with the directors of the company.
Now this condition is waived subject to the condition that is the manager
++ Is not having any direct or indirect interest in the capital of the company or its holding company or through any other statutory structures at any time during last two years before or on the date of appointment and
++ Is having a graduate level qualification with expert and specialized knowledge in the field of his profession.
MOC General Circular No. , Dated: July 14, 2011