Question

    According to Section 197(13), where any insurance is

    taken by a company on behalf of its managing director, whole-time director, manager, Chief Executive Officer, Chief Financial Officer or Company Secretary for indemnifying any of them against any liability in respect of any negligence, default, misfeasance, breach of duty or breach of trust for which they may be guilty in relation to the company, the premium paid on such insurance shall not be treated as part of the ______________________payable to any such personnel.
    A Remuneration Correct Answer Incorrect Answer
    B Net profit Correct Answer Incorrect Answer
    C Gross profit Correct Answer Incorrect Answer
    D Only (b) Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Remuneration, Reason: According to Section 197(13), where any insurance is taken by a company on behalf of its managing director, whole-time director, manager, Chief Executive Officer, Chief Financial Officer or Company Secretary for indemnifying any of them against any liability in respect of any negligence, default, misfeasance, breach of duty or breach of trust for which they may be guilty in relation to the company, the premium paid on such insurance shall not be treated as part of the remuneration payable to any such personnel.

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