What is managerial remuneration? What are the overall limits of managerial remuneration under the Companies Act

‘Managerial remuneratio’ may take the fOrln of monthly payments, say, salary, or a specified percentage of net profits or a commission or by way of a fee

for each meeting of the Board (called sitting fee). Besides, as per Explanation to Section 198 (4), the expression ‘managerial remuneration’ shall also

include:

(a) any expenditure incurred by the company in providing any rent-free accommodation, or any other benefit or amenity in respect of accommodation free

of charge, to any of its directors or manager.

(b) any expenditure incurred by the company in providing any other benefit or amenity free of charge or at a concessional rate to any of the persons aforesaid.

(c) any expenditure incurred by the company in respect of any obligation or service, which, but for such expenditure by the company, would have been incurred by any of the persons aforesaid.

(d) any expenditure incurred by the company to effect any insurance on the life of, or to provide any pension, annuity or gratuity for, any of the persons . aforesaid or his spouse or child.