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The Companies Act, 2013

Chapter XIII - Appointment And Remuneration of Managerial Personnel (196-205)

Section 199- Recovery of Remuneration in certain cases.

[Notification Date: 26.03.2014; Effective from: 01.04.2014]

Section 199- Recovery of Remuneration in certain cases. [New Provision]

Without prejudice to any liability incurred under the provisions of this Act or any other law for the time being in force, where a company is required to re-state its financial statements due to fraud or non-compliance with any requirement under this Act and the rules made thereunder, the company shall recover from any past or present managing director or whole-time director or manager or Chief Executive Officer (by whatever name called) who, during the period for which the financial statements are required to be re-stated, received the remuneration (including stock option) in excess of what would have been payable to him as per restatement of financial statements.