The Ministry of Corporate Affairs through notification dated the 18th March, 2021 has appointed on 18th March, 2021 as the date on which the provisions of Section 32 and Section 40 of the The Companies (Amendment) Act, 2020 shall come into force. The amended provisions provides that:
- If a company has no profits or its profits are inadequate, an independent director may receive remuneration, exclusive of any fees payable in accordance with the provisions of the revised Schedule V.
- If, in any financial year, a company has no profits or its profits are inadequate, the company shall not pay to its directors, including any managing or whole time director or manager or any other non-executive director, including an independent director, by way of remuneration any sum exclusive of any fees payable to directors except in accordance with the provisions of Schedule V.
