Nomination and Remuneration Policy Authored by Dokmart

Section 178

(3) The Nomination and Remuneration Committee shall formulate the criteria for determining qualifications, positive attributes and independence of a director and recommend to the Board a policy, relating to the remuneration for the directors, key managerial personnel and other employees.

(4) The Nomination and Remuneration Committee shall, while formulating the policy under sub-section (3) ensure that:

1. the level and composition of remuneration is reasonable and sufficient to attract, retain and  motivate directors of the quality required to run the company successfully;
2. relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and
3. remuneration to directors, key  managerial personnel and senior management involves a balance between fixed and incentive pay reflecting short and long term performance objectives appropriate to the working of the company and its goals:

Provided that such policy shall be disclosed in the Board's report.

The following companies are required to frame / adopt Nomination and Remuneration Policy: 

(i)     all public companies with a paid up capital of ten crore rupees or more;
(ii)     all public companies having turnover of one hundred crore rupees or more;
(iii)     all public companies, having in aggregate, outstanding loans or borrowings or debentures or deposits exceeding fifty crore rupees or more.