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Is 197(3) applicable to Private Limited Companies....the doubt arises because although 197(1) talks of public company, 197(3) states "notwithstanding anything contained in sub-sections (1) and (2).

Section 197- Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits.

Posted By: Amol kshirsagar 10 year(s) ago

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Expert Ankit Singhi

We are of the view that this sub-section will not apply to private company and limits under this section is applicable to public company and when there are no limits how we will calculate inadequate profits and therefore taking reference out of this, it can also can also be concluded that in case of no profit , it will also not apply to private company, keeping in view the intent of the section.

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