Companies free to decide managerial salaries: MCA
New Delhi, Sep 13: In a bid to further improve Ease of Doing Business (EoDB) in the country, the Ministry of Corporate Affairs (MCA) on Thursday said companies will no longer require government approval to decide salaries of their managerial staff.
"From September 12, 2018 approval of the Central Government shall no longer be required for the payment of remuneration to managerial personnel (in excess of 11 per cent of the net profit of a company)," the Ministry said in a statement.
In a move designed to empower common shareholders, the remuneration in excess of individual limits will now be approved by shareholders through a special resolution.
"... the government has notified that remuneration in excess of individual limits laid down for Executive and non-Executive Directors shall henceforth be approved by shareholders through a Special Resolution," the statement said.
The MCA notified commencement of changes to the Companies Act, 2013 along with the rules as part of its policy of 'Minimum Government-Maximum Governance'. The aim is to provide ease of doing business to the law-abiding corporates of the country.
In case a company has defaulted in payment of dues to a bank, financial institution or non-convertible debenture holder, a prior approval would be required from the entity to which the company has defaulted before getting the shareholders' approval.
The MCA said relevant changes have been made to Schedule-V of the Companies Act, 2013 so that companies can follow provisions of Schedule-V and need not take central government's approval when companies are in loss or have inadequate profits.
"With the issue of the notification all pending applications submitted to the Ministry
for approval of proposals for payment of managerial remuneration in excess of the limits laid down, would automatically abate and companies are free to obtain requisite approvals for those proposals, from the shareholders within one year," it added.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
ISRO successfully conducts second integrated air drop test for Gaganyaan mission
New Delhi (PTI): Space agency ISRO has successfully conducted the second integrated air drop test (IADT-02) for the upcoming Gaganyaan mission at the space station in Andhra Pradesh's Sriharikota.
The system is essential to ensure a safe recovery of the crew module -- the capsule in which astronauts sit during a human flight -- during re-entry and landing.
Union minister Jitendra Singh congratulated the Indian Space Research Organisation (ISRO) for successfully conducting the test.
"Congratulations #ISRO for the successful accomplishment of Second Integrated Air Drop Test (IADT-02) for #Gaganyaan, India's first Human Space flight scheduled next year. The second Integrated Air Drop Test (IADT-02) was successfully conducted at Satish Dhawan Space Station Sriharikota," Singh said in a post on X.
The IADT-02 follows the successful completion of the first IADT, which took place on August 24, 2025, at the Satish Dhawan Space Centre in Sriharikota.
Air drop tests recreate the last leg of a spacecraft's return to Earth. An aircraft or helicopter drops the spacecraft from a height to test various systems under different scenarios.
These are the deployment of the parachute system in case the mission is aborted mid-flight, system performance when one parachute fails to open and the spacecraft's orientation and safety during splashdown etc.
In the IADT-02 test, a simulated crew module, weighing about 5.7 tonnes, was lifted by an Indian Air Force Chinook helicopter to an altitude of about three kilometres and released over a designated drop zone in the sea, near the Sriharikota coast.
In a statement, the ISRO said, "Ten parachutes of four types were deployed in a precise sequence during the descent of the crew module, gradually reducing the velocity for safe touchdown. Subsequently, the simulated crew module was successfully recovered in coordination with the Indian Navy."
