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The Companies Act, 1956

Directors (Section 252 to Section 323)

Section 311 Increase in remuneration of managing director on reappointment or appointment after Act to require government suggestion.

Section 311 Increase in remuneration of managing director on reappointment or appointment after Act to require government suggestion.

In the case of a public company, or a private Company which is a subsidiary of a public company, if the terms of any re-appointment or appointment of a managing or whole-time director, made after the commencement of this Act, purport to increase or have the effect of increasing, whether directly or indirectly, the remuneration which the managing or whole-time director or  the previous managing or whole-time director, as the case may be, was receiving  immediately before such re-appointment or appointment, the re-appointment or appointment and shall become void if, and insofar as it is disapproved  by that Government shall not have any effect-

(a) in cases where Schedule XIII is applicable, unless such increase is in accordance with the conditions specified in that Schedule; and

(b) in any other case, unless it is approved by the Central Government; and shall become void if, and in so far as, it is disapproved by that Government.