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The Companies Act, 1956

Management and Administration (146 to 251)

Section 199 Calculation of commission, etc, in certain cases.

Section 199 Calculation of commission, etc, in certain cases.

(1) Where any commission or other remuneration payable to any official or employee of a company (not being a director or a manager) is fixed at a percentage of, or otherwise based on, the net profits of the company, such profits shall calculated in the manner set out in sections 349 and 350.

(2) Any provision in force at the commencement of this Act for the payment of any commission or other remuneration in any manner based on the net profits of a company, shall continue to be in force for a period of one year from such commencement; and thereafter shall become subject to the provisions of such section (1).