(1)The total managerial remuneration payable by a public company, to its directors, including managing director and whole-time director, and its manager in respect of any financial year shall not exceed eleven per cent. of the net profits of that company for that financial year computed in the manner laid down in section 198 except that the remuneration of the directors shall not be deducted from the gross profits:Provided that the company in general meeting may, with the approval of the Central Government, authorise the payment of remuneration exceeding eleven per cent. of the net profits of the company, subject to the provisions of Schedule V:Provided further that, except with the approval of the company in general meeting,—(i)the remuneration payable to any one managing director; or whole-time director or manager shall not exceed five per cent. of the net profits of the company and if there is more than one such director remuneration shall not exceed ten per cent. of the net profits to all such directors and manager taken together;(ii)the remuneration payable to directors who are neither managing directors nor whole-time directors shall not exceed,—(A)one per cent. of the net profits of the company, if there is a managing or whole-time director or manager;(B)three per cent. of the net profits in any other case.
