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.
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Karnataka Assembly passes Bill to regulate hoardings, levy advertisement fee
Bengaluru (PTI): The Karnataka Assembly on Monday passed an amendment Bill aimed at regulating outdoor advertisements and enabling municipal bodies to levy and collect fees on hoardings and billboards across the state.
The Karnataka Legislative Assembly adopted the Karnataka Municipalities and Certain Other Laws (Amendment) Bill, 2026, after it was moved by Urban Development and Town Planning Minister B S Suresha.
The legislation empowers municipal councils and corporations to levy an advertisement fee on any person who erects, exhibits, fixes or displays an advertisement on land, buildings, walls, hoardings or other structures within municipal limits. The fee will be determined by local bodies through a resolution, subject to minimum and maximum rates prescribed by the state government.
However, the Bill provides exemptions for advertisements related to public meetings of municipalities or corporations, elections to legislative bodies and candidature in such elections.
It also mandates the display of advertisements in any municipal area by obtaining written permission from the concerned municipal council or corporation commissioner after payment of the prescribed fee. Permission will not be granted if the advertisement violates municipal by-laws or if the applicable fee has not been paid.
The amendment further authorises municipal authorities to remove or demolish unauthorised advertisements erected in violation of the provisions. Officials may issue a notice directing the owner or occupier of the land or structure to remove such advertisements, failing which authorities can enter the premises and remove them.
According to the provisions, unauthorised advertisements will attract penalties and fines. Those who delay payment of advertisement fees or penalties will also be liable to pay interest at 18 per cent per annum from the date the payment becomes due until it is cleared.
Authorities may recover dues in a manner, similar to the recovery of property tax, including seizure and sale of advertisement materials if necessary.
The Bill also validates previous levies and collections of taxes, cess or fees by municipalities and corporations, stating that such actions shall be deemed lawful notwithstanding any court judgment, decree or order to the contrary.
Replying to members during the discussion, Minister Suresha said the legislation aims to curb unauthorised hoardings and ensure revenue flows to local bodies.
“Those who have put up boards unauthorisedly are not paying even one rupee in tax. We will remove such boards and take action against them. We will also bring them under the tender process so that the government gets revenue,” he said.
The minister explained that advertisements placed on different types of properties would be treated accordingly.
“Apart from that, there are other categories. Some boards are on government land, some are on private land, and some are on people’s own property. For all these there is tax,” he said.
While authorities cannot forcibly remove boards placed on a person’s own property, they would still be required to pay a prescribed corporation tax, he added.
Suresha also warned of strict action against unauthorised advertisements on government land.
“If someone has placed a private advertisement on government land, the government or corporation will fix the fee. We will call for tenders, and whoever wins the tender must pay the amount fixed by us,” he said.
The minister said the move would help local bodies generate substantial revenue.
“Altogether, there is revenue worth hundreds of crores from this, and our intention is that it should go to local bodies,” he said.
