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Question

What is the maximum Managerial Remuneration that can be paid in case of Absence or Inadequacy of Profit?

A 5% of net profit Correct Answer Incorrect Answer
B 7.5% of net profit Correct Answer Incorrect Answer
C 9% of net profit Correct Answer Incorrect Answer
D 11% of net profit Correct Answer Incorrect Answer
E 12.5% of net profit Correct Answer Incorrect Answer

Solution

Section 197 - overall Maximum Managerial Remuneration and Managerial Remuneration in Case of Absence or Inadequacy of Profits -11% 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.

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