Costing Standards Accounting Standards E-Forms

The Companies Act, 1956

Secretaries (Section 378 to Section 388A)

Section 387 Remuneration of manager.

Section 387 Remuneration of manager.

The manager of a company may, subject to the provisions of section 198, receive remuneration either by way of a monthly payment, or by way of a specified percentage , of the “net profits” of the company calculated in the manner laid down in sections 349 and 350, or partly by the one way and partly by the other :

Provided that except with the approval of the Central Government such remuneration shall not exceed in the aggregate five per cent of the net profits.