MCA amends Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2O14

New Delhi, Jan 8 (KNN) The Ministry of Corporate Affairs (MCA) has made certain amendments in the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2O14.

The new rules may be called the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020 and they shall be applicable in respect of financial years commencing on or after 1st April, 2020.

Every private company which has a paid up share capital of ten crore rupees or more shall have a whole -time company secretary," the amended rule specifies.

Also, in rule 9 of the said rules, in sub-rule (1), after clause (b), at the end the word "or" shall be inserted.

Further, after clause (b), the following clause shall be inserted, namely:-"(c) every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more.".

“The following explanation shall be inserted, namely - "Explanation :- For the purposes of this sub-rule, it is hereby clarified that the paid up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall be taken into account.”

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