(1) Every application made to the Central Government under the provisions of Chapter XIII shall be made in Form No. MR.2and shall be accompanied by fee as may be specified for the purpose.
(2) The companies other than listed companies and subsidiary of a listed company may without Central Government approval pay remuneration to its managerial personnel, in the event of no profit or inadequate profit beyond ceiling specified in Section II,Part II of Schedule V,subject to complying with the following conditions namely:-
(i) payment of remuneration is approved by a resolution passed by the Board and, in the case of a company covered under sub-section (1) of section 178 also by the Nomination and Remuneration Committee, if any, and while doing so record in writing the clear reason and justification for payment of remuneration beyond the said limit;
(ii) the company has not made any default in repayment of any of its debts (including public deposits) or debentures or interest payable thereon preference shares and dividend on preference shares for a continuous period of thirty days in the preceding financial year before the date of payment to such managerial personnel;
(iii) the approval of shareholders by way of a special resolution at a general meeting of the company for payment of remuneration for a period not exceeding three years;
(iv) astatement along-with a notice calling the general meeting referred to clause (iii) of sub-rule (2) above, shall contain the information as per sub clause (iv) of second proviso to clause (B) of section II of part-II of Schedule V of the Act including reasons and justification for payment of remuneration beyond the said limit;
24 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(v) the company has filed Balance Sheet and Annual Return which are due to be filed with the Registrar of Companies.
(3) Every such application seekingapproval shall be made to the CentralGovernment within a period of ninety days from the date of such appointment.